Baku, Azerbaijan March 4
By Anvar Mammadov - Trend:
The Central Bank of Azerbaijan (CBA) has increased the discount rate from five to seven percent on March 4, 2016, said the bank's message.
The upper limit of the interest rate corridor for liquidity operations was set at 10 percent (compared to 17 percent), while the lower limit remained unchanged at 2 percent, the CBA said.
"Meanwhile, it was decided to extend the duration of the operations for issuing and attracting liquidity at interest rates at the levels of upper and lower limit from one to seven days," said the message.
To manage the short-term liquidity, banks will be able to use 1-7-day repo (sale and repurchase agreement), and reverse repo operations which are the framework tools of the Central Bank.
Moreover, decisions have been made on differentiation of the standards of compulsory reservation and a corresponding regulatory basis was worked out. Later, the CBA will provide information about the data on differentiated standards of compulsory reservation.
Consistent measures have been taken in recent times for developing the financial markets, in order to ensure the sustainable macroeconomic stability and stimulate even wider use of the national currency as a store of value, said the CBA.
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