Baku. 8 December. REPORT.AZ/ The real effective exchange rate of Azerbaijani manat was 93.6 points as of November 1, 2017.
Report informs referring to the Central Bank of Azerbaijan (CBA), this is 2.1 percent more than the similar indicator of October 1. Compared to the same period last year, real effective exchange rate up by 2.4 percentage points.
The reason for increase in the real effective exchange rate is the fact that the national currencies of the major trading partners of Azerbaijan - Turkish lira, Russian ruble and Chinese yuan - declined against US dollar in October.
Notably, real effective exchange rate of Azerbaijani manat is calculated since 2000; its lowest rate was 74.2 in 2004, the highest – 153.1 in 2015. The lowest reported rate after beginning of financial crisis was 87 on September 1, 2016.
Notably, real effective exchange rate measures the value of a currency against a basket of other currencies; it takes into account changes in relative prices and shows what can actually be bought. An increase in REER implies that exports become more expensive and imports become cheaper; therefore, an increase indicates a loss in trade competitiveness.
Analytical Group of Report News Agency believes, real effective exchange rate of manat at 85-90 is satisfactory. It is projected that there will be growth in real effective exchange rate for November, and this trend will continue until the year-end.