The real exchange rate of the manat strengthened against the dollar, but weakened against the ruble

The real exchange rate of the Azerbaijani manat against the currencies of its main trading partners has been published.
According to Yeniavaz.com, citing official data, the real exchange rate of the manat against the US dollar in January of this year was 135.
For comparison, this figure was 130.7 for the same period last year.
The real exchange rate of the manat against the currencies of Azerbaijan's main trading partners changed from January 2025 to January 2026 as follows:
US dollar – from 130.7 to 135;
Chinese yuan – from 132.9 to 134;
Kazakhstani tenge – from 118.1 to 107.5;
Georgian lari – from 108.9 to 104.2;
Russian ruble – from 105.4 to 80.3;
Turkish lira – from 187.8 to 185.1;
Ukrainian hryvnia – from 129.5 to 130;
Belarusian ruble – from 166.2 to 139.3;
British pound – from 161.1 to 151.6;
Euro – from 127.9 to 117.4.

It should be noted that the real exchange rate index measures not only the nominal exchange rate of the manat but also its real purchasing power, taking into account inflation differences between countries.
Its appreciation against the US dollar, Chinese yuan, and Ukrainian hryvnia indicates a strengthening of the manat in real terms. While this makes imports relatively cheaper, it may weaken the competitiveness of exports. A decline against the Russian ruble, euro, and other currencies indicates a weakening of the manat against these countries. This leads to higher prices for imported goods, while simultaneously creating certain advantages for exports.
The real exchange rate directly affects the country's foreign trade balance. When the manat strengthens, Azerbaijani products appear more expensive in foreign markets, which hinders exports. When the manat depreciates, exports are stimulated, but imported goods become more expensive, and domestic inflationary pressure may increase.
For example, a fall in the real exchange rate of the manat against the Russian ruble from 105.4 to 80.3 means that imported goods from Russia have become more expensive. While 100 manats previously bought a certain amount of goods, now the same amount costs approximately 31% more.

Elnur Ali