The war with Armenia in and around Nagorno–Karabakh had facilitated Azerbaijan's trade deterioration, which was further exacerbated by the collapse of the local currency. Reviving rublerelated trade links with Russia was a key reason for Azerbaijan's entry into the Commonwealth of Independent States in September 1992. In 1995 inflation fell and the currency was stable until it was devalued in 1999, causing inflation of 10% to 15%. The current account deficit was over one-third of GDP in 1998.
The US Central Intelligence Agency (CIA) reports that in 2002 the purchasing power parity of Azerbaijan's exports was $2 billion while imports totaled $1.8 billion resulting in a trade surplus of $200 million.
The International Monetary Fund (IMF) reports that in 2001 Azerbaijan had exports of goods totaling $2.08 billion and imports totaling $1.47 billion. The services credit totaled $290 million and debit $665 million. The following table summarizes Azerbaijan's balance of payments as reported by the IMF for 2001 in millions of US dollars.
|Balance on goods||614|
|Balance on services||-375|
|Balance on income||-367|
|Direct investment abroad||…|
|Direct investment in Azerbaijan||227|
|Portfolio investment assets||…|
|Portfolio investment liabilities||…|
|Other investment assets||-394|
|Other investment liabilities||294|
|Net Errors and Omissions||-1|
|Reserves and Related Items||-73|