BAKU, Azerbaijan, March 19. A slight growth has been recorded in the recent interest rates on notes of the Central Bank of Azerbaijan (CBA), marking an increase since February 8 after a period of decline, said Member of the Milli Majlis (Parliament) Committee for Economic Policy, Industries, and Enterprising Vugar Bayramov on social network, Trend reports.
He pointed out that the interest rate on 168-day notes, which was 6.62 percent at the beginning of last month, has now risen to 6.85 percent.
"Similar increases have been observed across various note durations, including 84-day and 28-day notes, reflecting a comparable rise in 252-day notes, which are considered long-term. Despite the Central Bank's discount interest rate being reduced from 8 percent to 7.75 percent on February 1, there has been an increase in yields on Central Bank notes.
A notable aspect regarding note interest rates is the marginal difference between the final interest rates on 28-day and 168-day notes, with only a 0.05 percent variation. This discrepancy may potentially drive greater interest in short-term positions while diminishing demand for medium-term notes.
It is evidently crucial for the Central Bank to focus on securing more funding through medium- and long-term notes, considering the significance of such decisions in financial management. Hence, achieving the financial balance between interest rates on short-term and medium-term notes is paramount, necessitating periodic review and optimization.
Overall, the circulation volume of the Central Bank's notes totals 1.29 billion manat, or $761.76 million, marking an increase of 33.16 million manat, or $19.5 million, compared to the previous month's closing balance," the MP said.
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