BAKU, Azerbaijan, January 9. The Management Board of the Central Bank of Azerbaijan approved the new reserve requirement ratios, on December 28, 2022, Trend reports via the bank.
According to the Central Bank, the following mandatory reserve ratios will be applied: the reserve requirements on funds of individuals and private entrepreneurs attracted in the national currency are set at the level of five percent, while funds in foreign currency – at six percent.
In the meantime, the reserve requirements on deposits of legal entities in national currency totaling up to 1 billion manat ($588.5 million) – five percent, on deposits of legal entities in national currency totaling over 1 billion manat ($588.5 million) – 10 percent, on deposits of legal entities in foreign currency amounting up to 750 million manat ($441.37 million) – six percent, on deposits of legal entities in foreign currency for more than 750 million manat ($441.37 million) – 12 percent.
Meanwhile, the required reserve ratio on funds attracted in precious metals settled at the level of five percent.
The reserve requirement ratios for liabilities to the non-resident financial sector and settlements with international financial organizations remained unchanged at zero.
Following the Central Bank's decision of January 2023, all banks should calculate reserve requirements according to the new standards, and maintain them in line with the new standards, starting from February 15, 2023.