BAKU, Azerbaijan, August 31. Central Bank of Azerbaijan (CBA) has started conducting one-day deposit operations as a permanent opportunity for the purpose of sterilization and one-day reverse REPO operations for the purpose of providing liquidity, Trend reports via CBA.
The interest rate on one-day deposit operations for sterilization is equal to the lower limit of the interest corridor, and the interest rate on one-day reverse REPO operations for the purpose of providing liquidity is equal to the upper limit of the interest corridor.
"As part of perfecting the operations on the open market with the aim to sterilize, if necessary, it's planned to conduct seven-day REPO trades, along with one, three, six and nine-month notes. As open market operations focused on providing liquidity, seven-day REPO auctions are planned, if necessary. It provides for the regulation of interest on seven-day REPO transactions in the range between the lower limit of the interest rate corridor and the discount rate. Interest on seven-day reverse repo transactions will be determined in the range between the discount rate and the upper limit of the interest rate corridor. And the yield of one, three, six and nine-month notes will be formed depending on the ratio of supply and demand in the market. Depending on the situation in the money market, especially in the inter-bank market, other operations on the open market may be applied," CBA informed.