CBA lowers reserve requirements on deposits (UPDATE)
Details added (First version posted on 13:25)
Baku, Azerbaijan, Mar.12
By Azad Hasanli - Trend:
The Central Bank of Azerbaijan (CBA) has lowered reserve requirements on deposits by four times.
The consequential amendments to the rules of calculation and formation of reserve requirements have been approved by the Chairman of CBA Elman Rustamov.
As a result, reserve requirements on deposits or settlement base have been reduced from 2 percent to 0.5 percent of their volume.
As of January 2015, the depositary base of Azerbaijani banks increased by 19.33 percent.
As of February 1, 2015, the total amount of bank deposits and deposits of physical and legal entities totaled 15.134,7 billion manats compared to 12.683 billion manats as of early February 2014.
The official exchange rate for March 12 is 1,0498 AZN / USD.
Around 7.330 billion manats fell to cash, 2.456,9 billion manats were demand deposits, and 4.873,1 billion manats term deposits. The funds in foreign currency amounted to 7.805 billion manats (1.821,6 billion manats and 5.983,4 billion manats, respectively).
The deposits of physical entities increased by 10.38 percent, while the volume of legal entities' deposits by 28.6 percent compared to January 2014.
As of January 2015, the volume of physical entities' deposits in the banks amounted 7.121,3 billion manats compared to 6.451,4 billion manats in early February 2014.
Around 4.276,3 billion manats (60.05 percent) of the population's funds were placed in the national currency(a 3.3 percent decrease compared to the previous month), while 2.845 billion manats in freely convertible currency (a 2.9 percent growth).
The Azerbaijani population's deposits in the national currency in the banks have prevailed over those in foreign currency since 2012.
As of January 2015, the volume of deposits of financial organizations amounted to 4.246,9 billion manats compared to 3.383,4 billion manats as of January 2014. The volume of deposits of non-financial organizations totaled 3.766,7 billion manats compared to 2.848,2 billion manats as of January 2014.
The total volume of deposits of legal entities totaled 8.013,6 billion manats compared to 6.231,6 billion manats as of January 1, 2014.
The amendments came into force as of March 7.
There are 45 banks in Azerbaijan, two of which are state-owned ones.
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