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Commission for cash delivery of highest valued manat banknote introduced in Azerbaijan

Business Materials 20 February 2013 15:57 (UTC +04:00)
The Azerbaijani Central Bank (CBA) has introduced a commission of 0.3 per cent for cash delivery of 100 manat banknotes, the CBA told Trend on Wednesday.
Commission for cash delivery of highest valued manat banknote introduced in Azerbaijan

Azerbaijan, Baku, Feb. 20 / Trend I. Khalilova /

The Azerbaijani Central Bank (CBA) has introduced a commission of 0.3 per cent for cash delivery of 100 manat banknotes, the CBA told Trend on Wednesday.

"The Central Bank has introduced a commission of 0.3 per cent for cash delivery of 100 manat banknotes since Feb. 1, 2013 as a result of monitoring and evaluation to improve the efficiency of cash transactions in the country, to optimise the nominal structure of banknotes, to reduce the use of cash payments in calculations and to promote the use of cashless payment systems," the CBA said.

The share of 100 manat banknotes in circulation has reached 75 percent over the past seven years, exceeding internationally accepted standards.

"Introducing a tariff will reduce the demand for 100 manat banknotes by transferring the load from the corresponding banknotes on banknotes of other nominal, and, thus, affect the optimization of the structure of currency in circulation," the central bank said.

According to the CBA representatives, introducing a commission for 100 manat banknotes will increase the share of other banknotes in banking transactions, which will ensure adequacy while covering the public demand for the cash structure.

"Several business processes in the field of cash in international practice in many countries (storage, transportation and processing of banknotes) have been delivered by central banks to the private sector and related services are rendered to commercial banks for a fee," the CBA said. "However, no fee was taken for services related to cash at the Azerbaijani Central Bank."

According to the CBA, taking into account the pace of macroeconomic development of the country and the dynamics of growth of money in circulation, the central bank regularly conducts assessments to optimize the structure of cash and to ensure adequate payments.

The official exchange rate is 0,7848 AZN/USD on Feb. 20.

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