Azerbaijan, Baku / Trend corr I. Khalilova / According to the National Bank of Azerbaijan (NBA), the manat's (Azerbaijani currency) real efficiency rate (RER) increased in general trade by 5.6%, in import by 5.5%, in export by 5.8% in May, which is higher than Azerbaijan's foreign trade partner's currencies. NBA reported on 27 June that the RER in general trade and import increased by 9.9% and in export by 10%, during the same period of 2006.
Changes in the nominal currency's rates during the last five months affected the RER's in general efficiency rate by 35%, while change in prices (including the oil sector) by 65%.
Research revealed that the US' influence upon the RER in foreign policy (including the oil sector) affected it by 0.3% in January to May, and affected the Eurozone by 3.2%, England by 0.6%, Russia by 0.6, Georgia by 0.1%, Israel by 0.2%, the Ukraine by 0.2, Japan by 0.3%, and Iran by 0.1%. At the same time Turkey was affected by the RER with a decrease of 0.1%, Kazakhstan remained neutral.
In May, compared to December 2006, the RER of non-oil sectors increased in general trade by 5.1%, in import by 5.3%, in export by 3.5%, and compared to May 2006, increased by 9.1%, 9.6%, and 6.2% respectively.
A decrease of the RER in the non-oil sector was observed in May, compared to December 2000. In general trade (excluding the oil sector) rates were 11.2%, in import 9.1%, and in export 21.6%. Including the oil sector, the RER decreased by 5.9%, 7.9%, and 4.3% respectively.
In January-May 2007, the manat's real rate increased compared to the currencies of the United Stated, the Eurozone, England, Turkey, Georgia, Kazakhstan, Russia, Ukraine, Iran, Japan, and Israel which exceeded the rate of the manat's nominal growth. At the same time, the manat nominally cheapened compared to the currencies of the Eurozone, Turkey, Georgia, Israel, and Kazakhstan, but really increased, excluding the currency of Turkey. That is explained by the fact that the growth of inflation in Azerbaijan exceeded the growth of consumer prices in those countries.
The NBA concluded that in a long period (from 2000 to May 2007) the RER of the manat decreased, which is proved by the availability of opportunities for foreign trade with the key trade partners. Between 2001 and 2007, Azerbaijan's inflation rate increased by 53.8%, while prices in trade partner countries increased on average by 74.1%.