Change in Nominal Effective Rate of AZN Influence Price Increase by 88.5%

Business Materials 23 August 2008 14:23 (UTC +04:00)

Azerbaijan, Baku, 23 August /corr. Trend I.Khalilova / The National Bank of Azerbaijan (NBA) mentions decrease in the rates of reduction of nominal effective rate (NER) of AZN with respect to the currencies of the trading partners of Azerbaijan in January - July 2008 as compared to December of last year, NBA said on 23 August. In the gross trade turnover, the rate lowered by 0.9%, in the export - by 2.75, while in the import it increased by 1%.

According to the accounts of NBA, in relevant to the end of 2007, in January - July the NER on non-oil sector in the gross trade turnover strengthened by 0.7%, import - 0.5%, but in the export - by 1%.

Over seven months, the change of nominal exchange rate influenced the gross trade turnover by 11.5%, while the price change of 88.5% (taking into account the oil sector). This means that a change in the nominal rate had reducing effect on real effective rate, and prices - increasing.

In January - July 2008, as compared to December 2000, the NER of AZN in foreign trade (taking into account the oil sector) reduced by 15.4%, in import - by 7%, export - 21.4%. In non oil sector, NER of AZN decreased in general trade by 2.3%, in import - 4.1%, while in export it increased by 7.8%.

Official exchange rate on 23 August is 0.8129 AZN/USD.

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