In 2000-2008 Inflation of Trade Partners 2.8% Exceeds Rate in Azerbaijan
Azerbaijan, Baku, 23 August /corr. Trend I.Khalilova / According to the information provided by the National Bank of Azerbaijan (NBA), taking into account the oil sector, in January to July 2008 the real effective rate (RER) of AZN rose by 7.8% in the gross trade turnover as compared to the currencies of the foreign trade partners. The increase in import was 8,8 and export - 6.6%.
The investigations also showed that the influence of the share of the USA on the increase RER in foreign trade (taking into account oil sector) in January to July 2008 was at the level of 15.1%, Euro-zone - 7.8%, England - 18.1%, Russia - 3.6%, Turkey - 16%, Iran - 4.5%, Kazakhstan - 11.2%, Georgia - 1.5%, Japan - 11%. Whereas the share of Ukraine had rate reducing influence at the level of 5.4%, Israel - 0.7%.
As compared to December 2007, in January to July the RER in the non-oil sector strengthened in the gross trade turnover by 7.6%, import - 7.8% and export - 6.3%. However, in the long-term outlook the real effective rate of manat will continue to reduce. As compared to December 2000, the rate of strengthening of RER in the non-oil sector in seven months was 4.3% in the gross trade turnover (minus oil sector), in export - 17.4%, import - 1.6%. Taking into account the oil sector, rate strengthened by 2.5%, 2.9% and 1.4% respectively.
The decrease RER in the non-oil sector in the long-term period is explained through exceeding of growth rates in the inflation in the trading partners the increase in the consumer prices in Azerbaijan. Over the period from December 2000 to July 2008, the level of inflation in Azerbaijan was 91.8%, whereas in the trading partner countries, averagely prices increased by 94.6%.
Over seven months, strengthening rate of real rate of manat with respect to the currencies of the USA, Euro-zone, England, Turkey, Russia, Georgia, Iran, Japan and Kazakhstan exceeded the rates of strengthening of nominal rate of manat. At the same time, national currency of Azerbaijan nominally fell in price with respect to the currencies of Euro-zone, Russia, Ukraine, Georgia, Israel and Japan, and really it strengthened with respect to all currencies, with exception of Ukrainian and Israeli.
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