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National Bank of Azerbaijan Cut Rates Once Again

Business Materials 31 October 2008 11:18 (UTC +04:00)
National Bank of Azerbaijan Cut Rates Once Again

Azerbaijan, Baku, 31 October/ Trend / The Board of Directors of the National Bank of Azerbaijan  decided to cut rate from 12% to 10% annually and cut upper limit of rated corridor from 17% to 15% and lower corridor from 3% to 1%. The changes will take effect on 31 October.

The rates of obligatory reservation on bank liabilities in both foreign and national currency will be reduced from 12% to 9% and rate of obligatory reservation on foreign liabilities from 5% to 0% from 3 November.

In a year, strategic currency reserves of Azerbaijan exceeded $17bln and aggregate foreign assets prevailed over liabilities by $9bln which strengthened Azerbaijan's position in world economy.

Strategic currency reserves exceed total foreign debt by 1.7 times and secure international paying capacity.

Together with the government, NBA is taking preventive measures to secure financial stability in the bank system and prevent foreign factors of risk. These measures aim at promoting stability of bank system, preventing impact of global financial crisis on prudential regulations and securing high flexibility of liquid instruments.

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