2987.6BN MANATS IN AZERBAIJAN IN CIRCULATION

As of totals of the first six months of 2005 money base in the expanded implication (reserve money) reduced by 441.4bn mantas or 10.6% and made up 3,726,7bn mantas. The National Bank of Azerbaijan told Trend said that reserve money in manats comprised 3,354,8bn manats, which indicates increase of their amount 4,831% as compared to the beginning of 2005.

According to 1 July 2005 the money in circulation constituted 2,987,6bn manats, with

a rise of 13,554% over the first half-year. Thus, special weight of money mass grew in circulation from 82.2% to 89%.

Rise of money mass out of the banking system comprised 11.9%, while in cash-offices of the banks a rise of comprised 29.8%. The money in cash grew in the money structure 9.2% to 10.5%.

Thus, money supply grew in accoirdnace with major directions grew in accordance with the major diections of monteray policy. Considerable changes were observed in the structure of monteary aggregates, consoderbe part of monye base was included into monye aggregate M2. in this peirod a process of money multipication has become intensified, which demonstrates that the banking system reflects a reaction to the macro-economic dynamic