Report analysts: No reason for a new devaluation now

Baku. 27 April. REPORT.AZ/ Devaluation of national currencies against US dollar in the countries, the main trade partners of Azerbaijan (Russia, Turkey, Germany, China, Italy) on imports over the past year amounted to 27-45%. Over the past 7 years, the devaluation in these countries changed in the range 45-122%.

Analytical Group of Report Information Agency believes that, this process in the seven-year period due to the fact that it was during this period the euro reached the highest mark in comparison with the US dollar.

During the first quarter of this year, Azerbaijan imported the largest number of goods in USD terms from Russia (335 million dollars). It should be noted that, this is more by 20.3% in comparison with the same period of 2014. The Russian ruble depreciated against the US dollar over the past seven years at 122%, and for last year by 45%.

Turkish national currency (Lira) depreciated against US dollar over the past seven years at 110%, and for the last year by 30%. Imports from Turkey to Azerbaijan in the first quarter of 2015 increased by 21% in comparison with last year and amounted to 323 million dollars.

Among the countries of the European Union in Germany and Italy, Euro fell in value against the dollar over the past seven years by 45% over the last year by 27%. Imports from Germany in comparison with the first quarter of last year increased 10% to 170 million dollars, from Italy by 180% to 112.5 million dollars.

As a result, for the first quarter of this year, the volume of imports in Azerbaijan amounted to 428.5 million dollars, which is 38% more than the same period of last year. In fact, due to the strengthening of US dollar in the aforementioned countries, the average volume of imports would have to be reduced in dollar terms by 35%. Because, for the imported goods in USD are paid 35% less. Increasing the volume of imports by 38% and a reduction in exports in dollar terms by 37% to 3 383.7 million US dollars violated the trade balance of Azerbaijan. Because of the inappropriate continuation of this situation, Azerbaijan has joined the "devaluation of the campaign". To date, an important condition is to reduce imports and to increase the exports. The falling trend in the value of the national currency in the countries, trade partners will have a serious impact on Azerbaijan, and the devaluation of the manat will again be on the agenda.

"But there's no reason for a new devaluation now. The basis for this opinion is a slight increase in oil prices and the strengthening of the currency in the countries - trade partners of Azerbaijan", concluded the Report analysts.