Tashkent, Uzbekistan (UzDaily.com) -- IMRI experts assessed the impact of changes in the exchange rates of trading partners in the first quarter of 2023 on the external competitiveness of Uzbekistan.

Competitiveness is the degree of attractiveness of goods in comparison with the goods of foreign trade partners. The level of competitiveness of a product is affected by the price in the country and in partner countries, as well as the nominal exchange rate.

The analysis was carried out on 15 countries that are the main trading partners of Uzbekistan, in particular: China, Russia, Kazakhstan, Turkey, South Korea, Germany, Afghanistan, Brazil, Iran, India, Ukraine, Latvia, Lithuania, Kyrgyzstan and France.

At the first stage, the total share of partner countries in the foreign trade turnover of Uzbekistan was calculated, which amounted to 65.5%.

At the second stage, the dynamics of the consumer price index in these countries over the period under review was analyzed.

At the third stage, an analysis was made of the dynamics of the exchange rates of the above countries.

The Russian ruble depreciated by 0.2% in March compared to the beginning of 2023 (from 45.64 to 45.75). This is due to the sanctions imposed by foreign countries against Russia. The Kazakhstani tenge appreciated by 0.9% (from 416.92 to 412.81), while the Turkish lira depreciated by 2.1% (from 14.1 to 14.4).

At the fourth stage, the nominal effective exchange rate for each country was calculated, and the real effective exchange rate was determined taking into account the level of inflation. The growth of the real effective exchange rate indicates that the country's exports are becoming more expensive, while imports are becoming cheaper, and its decline is the opposite.

The results of the analysis of the nominal effective exchange rate showed that the external competitiveness of Uzbekistan increased only in relation to Turkey (NEER=2.03), and decreased in relation to other countries. At the same time, the real effective exchange rate strengthened against Turkey, South Korea, Germany, Afghanistan, Brazil, Kyrgyzstan, France, Italy and Japan.

Thus, the export of goods from Uzbekistan to these partner countries has become more expensive, while imports from these countries have become cheaper. Relative to other major trading partners (China, Russia, Kazakhstan, Iran, India, Ukraine, Latvia, Lithuania, Belarus and Turkmenistan), the value of exports has declined while the value of imports has risen.