Azerbaijani manat rises in price against partner countries' currencies

Azerbaijani manat rises in price against partner countries' currencies

BAKU, Azerbaijan, March 16

Eldar Janashvili - Trend:

Amid the stability of the Azerbaijani manat against the US dollar, the currency of our main trading partners is depreciating, Vusal Gasimli, Executive Director of Azerbaijan’s Center for Analysis of Economic Reforms and Communication (CAERC) said, Trend reports referring to the CAERC on March 16.

Gasimli noted that in the first half of March, against the Azerbaijani manat the Georgian lari depreciated by 6.5 percent, the Russian ruble by 9.8 percent, the Turkish lira by 1.4 percent, the Ukrainian hryvnia by 5.9 percent, Chinese yuan - by 0.39 percent, and Kazakh tenge - by 6.7 percent respectively. Thus, the real effective rate of the manat, which is calculated taking into account the nominal rate and inflation of currencies of the trading partners of the issuing country, has risen in price.

All methods used to measure the ratio of the real effective manat rate to the equilibrium level (purchasing power parity, macroeconomic balance, Big Mac index and others) show that the real effective exchange rate of the national currency was still below its equilibrium point.

The rate, calculated on the basis of purchasing power parity, determines the local currency value as the necessary number of dollars to buy goods on the market of another country relative to the purchase of the same product in the US.

“In other words, the price of a product worth $1 in the US will be indirectly determining the exchange rate in the local market,” he said.

In Azerbaijan, this figure, according to World Bank statistics for 2018, is $0.25. It means a product that can be bought in the United States for $1 can be bought in Azerbaijan for 25 cents.

According to the World Bank, in 2018 in Azerbaijan one “international dollar” was estimated at $0.25, in Belarus - at $0.25, in Kyrgyzstan, Georgia and Ukraine - at $0.29, in Kazakhstan - at $0.31 and Russia at $0.39. The devaluations that have occurred in these countries under the impact of recent global shocks have strengthened the real effective rate of the manat.

“If we take the real effective rate (REER) of manat in 2000 as 100, then the coefficient of the same rate at the beginning of 2020 is 93.3. In other words, the real effective manat rate at the beginning of this year was lower than in 2000. However, amid the recent devaluations of the currencies of Azerbaijan’s trading partners, the stability of the manat compared to the US dollar against the real effective manat rate is getting more expensive and approaching the target figure,” Gasimli said.

The growth of the real effective manat rate further strengthens Azerbaijan’s position in the CIS in terms of the minimum and average indicators of pension and wages in the country.

“On the other hand, in order to regulate the impact of increasing the real effective manat rate on the competitiveness of the economy, it is necessary to continue institutional reforms, further improve the competitive environment, develop human capital and enter the markets”, he added.


Follow the author on Twitter: @eldarjanashvili

Subscribe to Trend in Google News! Subscribe
Seizing of illegally stored weapons from citizens continues in Kazakhstan - interior minister
Seizing of illegally stored weapons from citizens continues in Kazakhstan - interior minister
Kazakh Armed Forces performing tasks to ensure public order in regions with “red” level of terrorist threat
Kazakh Armed Forces performing tasks to ensure public order in regions with “red” level of terrorist threat
Kazakhstan developing measures to reform Samruk-Kazyna Fund's activities
Kazakhstan developing measures to reform Samruk-Kazyna Fund's activities
Loading Bars
India's Karnataka approves design & launch of nano-satellite by govt school students at Rs 1.9 Cr
‘One Modi cannot change a country, need more icons like him’: Himanta Biswa Sarma
Seizing of illegally stored weapons from citizens continues in Kazakhstan - interior minister
Azerbaijani border serviceman commits suicide in military hospital
Iran unveils details of agricultural export
Kazakh Armed Forces performing tasks to ensure public order in regions with “red” level of terrorist threat
Tokyo hits record 10,000 COVID cases, Japan over 50,000 for first time
Number of COVID-19 infections in Russia surpasses 11 mln since pandemic began
Kazakhstan developing measures to reform Samruk-Kazyna Fund's activities
PMO records surge in load/unload operations at Iranian ports
S&P predicts gas production growth in Azerbaijan through 2025
Turkmen medical enterprise discloses production data
Azerbaijan to hold auction for Ferrum Kapital CJSC's bonds
Kazakh president talks need to continue work to reveal all circumstances of recent riots
Kazakh oil and gas company to purchase helium via tender
Iran reveals COVID-19 data for January 22
Oil price spikes likely in 2022 amid inventory tightness midyear
7 killed, 16 injured in massive fire in central Mumbai high-rise
Oil demand to be robust in coming years despite net-zero strategies
India reports 3,37,704 new Covid cases, 488 deaths in 24 hours
Number of COVID-19 infections in Russia surpasses 11 mln since pandemic began
OPEC+ focus to switch away from propping up prices
Iran shares data on buy/sell operations at its Mercantile Exchange
Most people feel I-T exemption limit could be raised from Rs 2.5 lakh: India's KPMG
Turkmenistan’s Balkandokma complex doubles cotton yarn sales
Uzbekistan reveals data on agricultural, forestry and fisheries production
Tax benefits to increase disposable income likely in India's Union Budget
Uzbekistan approves procedure for rational use of land resources
S&P discloses inflation forecast for Azerbaijan through 2025
S&P Global Ratings announces forecast for Azerbaijan's budget surplus
Magnitude 6.2 earthquake strikes Unalaska, Alaska
NIOC agrees with Russian companies to develop Iran's oil, gas fields
SOCAR dismisses information about purchasing bitumen plant in Armenia
Kazakh company eyes to import leather products from Uzbekistan
S&P comments on possible swap line between Central Banks of Azerbaijan and Turkey
Oil production in Azerbaijan to moderately rebound - S&P
Georgia discloses its main cement sources of import
Turkmenistan lays out plans for hydrogen energy development
US lawmakers seek litigation at WTO against India on wheat subsidy
Iran, Azerbaijan continue construction of Khudafarin and Giz Galasi hydro junctions (PHOTO)
Climate policy of Uzbekistan: Implementation of measures to prevent climate change and adaptation in most vulnerable sectors of economy
S&P Global Ratings approves Azerbaijan's credit rating at 'BB+/B'
UK Foreign Secretary to meet with Lavrov in Moscow in February
Netaji’s statue at India Gate to be 25 feet high: NMAG director
India to allow arms manufacturers to enhance production
Kazakhstan names Samruk-Kazyna's entreprises planned to be put up for IPOs
Iranian currency rates for January 22
Statistical center of Iran reveals figures of growing inflation
Azerbaijan reduces quarantine period for COVID-19 patients
Kazakh Gas Processing Plant opens tender on manufacturing of parts for pumping equipment
Azerbaijan's Kalbajar - most suitable for winter tourism among liberated areas, agency says
EAM Jaishankar dials envoys in US, Canada after 4 Indians freeze to death along US-Canada border
Balkan Shipbuilding Yard in Turkmenistan to build new ships
Uzbekistan shares domestic COVID-19 data for Jan.21
Azerbaijani oil prices decline
Azerbaijan talks probability of commercial oil & gas reserves at Aypara area in Caspian Sea
GM sets $6.5 bln for in Michigan electric vehicle plants -document
Georgia – Turkey trade turnover up
Subhas Chandra Bose's family members welcome PM's decision on Netaji's statue at India Gate
Kazakhstan talks business support measures related to tax legislation
Iran resumes gas export to Turkey
Central Bank of Azerbaijan fully meets demand at foreign exchange auction
US commits to helping Saudi Arabia, Gulf partners defend against threats from Yemen
NYPD officer killed, another seriously wounded in shooting
Poland, Georgia to hold Joint Intergovernmental Commission meeting – ministry
Saudi-led coalition denies targeting detention centre in Yemen's Saada
Arnold Schwarzenegger involved in car accident
Germany's minimum wage hike will not cost jobs - labour minister
Canadian tourist killed, 2 others wounded in Mexico resort shooting
Iran says gas flows to Turkey resume after being cut due to technical fault
Student shot at Maryland school, suspect in custody
France: Former aides to ex-president Nicolas Sarkozy jailed for opinion poll fraud
WHO recommends reduced dose Pfizer COVID vaccine for under 12s
Islamic State jailbreak in Syria, army barracks attack in Iraq leave at least 39 dead
U.N. chief condemns deadly Saudi-led coalition strike in Yemen
Amirabdollahian: new chapter in Iran-Russia ties to unfold
Trade turnover between Uzbekistan and Azerbaijan increases
Dozens killed in Saudi-led coalition air raid on Yemen prison
Price of fuel and lubricants in Kyrgyzstan increased by 70% over past year
Airbus cancels Qatar Airways order in escalating dispute
Turkey wraps up in-person semester with success against pandemic
Azerbaijan may toughen punishment for domestic violence
Azerbaijani Xalq Bank's profits increase
Azerbaijan names most profitable non-oil fields in terms of tax revenue growth
Kazakh oil and gas company to purchase variable speed drives
Кazakh Electricity Grid Operating Company opens tender to buy hydraulic press
Turkmenistan-Belarus trade turnover fell in 11M2021
Crime rate in Azerbaijani Armed Forces decreases - military prosecutor general
Size of consumer market in Azerbaijan increases - minister
Price indexes of financial, trade sectors at Uzbek stock exchange rise
Government focuses on subsidizing production rather than import – Azerbaijani Cabinet of Ministers
Azerbaijan is one of countries with best conditions for training - Australian gymnast
Azerbaijan's parliament discusses lifting of visa regime with Serbia
European Azerbaijan School hosts return of World Scholar's Cup to Baku (PHOTO)
Uzbekistan and Oman eye joint projects in transport sector
Schlumberger's profit jumps as higher oil prices spur drilling demand
Kazakhstan to strictly fulfill all investment obligations - President Tokayev
Global inflation crisis intensifying: what will Azerbaijan do?
Kazakhstan needs new tax policy - president
Georgia’s main oil exporters disclosed
All news