The exchange rate of the Russian national currency, the ruble, has fallen by 8% against the dollar in the last month.
Yeniavaz.com reports that on September 3, one dollar was equal to 88 rubles, and today one dollar was equal to 95 rubles.
I wonder what positive and negative consequences the 8-percent depreciation of the Russian ruble against the dollar in the last month will have on the economy of Azerbaijan, given that the manat exchange rate remains stable against the dollar?
Economist expert Allahverdi Aydin, who gave a statement on this matter to the Yeniavaz.com website, says that since Russia is the main trading partner of Azerbaijan, the depreciation of the national currency in this country against the dollar will definitely affect the country's economy:
“The devaluation of the ruble against the dollar will be observed, first of all, in the prices of products imported from this country to Azerbaijan. As we know, one of the countries from which Azerbaijan imports the most products is Russia. In the first 8 months of this year, products worth 2.2 billion dollars were imported from Russia, and Russia became the second country in terms of imports after China. This also means that every month, products worth about 275 million dollars are imported from Russia to Azerbaijan. Considering that inflation in Russia over the past month was only 0.2%, there should be a significant decrease in prices for products imported from our northern neighbor. That is, an 8% decrease in the ruble against the dollar over the past month means that products imported from Russia will also become cheaper at the same level. For example, if a month ago we paid 11 dollars or 19 manats for any product worth 1,000 rubles in Russia, now we pay 10.5 dollars or 18 manats for the same product".

Allahverdi Aydin

The economist notes that one of the consequences of the fall in the ruble exchange rate will be associated with the rise in prices of the products we export to this country:
"Indeed, the cost of the products we export to Russia is about 3 times lower than imports. However, in all cases, Russia is also Azerbaijan's main trading partner for exports. Products worth about $770 million were exported to Russia in the first eight months of this year. The 8% fall in the ruble against the dollar over the past month means that the prices of the products we sell to Russia will also rise at the same level. The positive side of this is that although we export the same amount of products, more foreign currency enters the country due to the fall in the ruble exchange rate. "The negative side is that the change in the exchange rate leads to an increase in the prices of Azerbaijani products in Russia, which reduces the competitiveness of these products".
Allahverdi Aydin says that one of the negative consequences of the fall of the ruble against the dollar and, at the same time, against the manat, is the damage caused to our compatriots who work in Russia and send money to Azerbaijan. He says that the current change in the exchange rate is not beneficial to those who receive their salaries in rubles and send it to Azerbaijan:
"The current situation reduces the real income of our compatriots working in Russia, and this means a decrease in the funds coming into the country from our northern neighbor. For example, when a compatriot who worked in Russia sent 10 thousand rubles he earned to Azerbaijan a month ago, his family members here received 192 manats, and today they receive the 10 thousand rubles he sent for 178 manats. As always, this year the most money was sent to Azerbaijan from Russia."

Elnur Ali