BAKU, Azerbaijan, March 29. By the decision of the Board of the Central Bank of Azerbaijan (CBA) from February 27 this year, the quota on tools of standing overnight deposit was increased to expand the efficiency of sterilization operations, Trend reports via the CBA.
According to the CBA, in response to the risks observed in the internal and external environment of inflation, the Central Bank pursues an anti-inflationary monetary policy.
"In accordance with the decision on the required reserve norms, in order to effectively regulate the money supply and limit the concentration of liquidity in the banking system, starting from February 2023, all banks began to keep required reserves in accordance with the new norms," said the statement.
In March, the value of the required reserves that banks must keep in Azerbaijani manat increased by 371 million manat ($218.2 million), or 57 percent, compared to January.
"In order to increase the efficiency of sterilization operations, by the decision of the Board of the Central Bank, the quota on tools of standing overnight deposit was increased from February 27, 2023," the CBA added.
Meanwhile, the Central Bank launched 7-day REPO transactions. The mentioned solutions make it possible to regulate the demand factors of inflation through monetary conditions.