Azerbaijan, Baku / Trend , corr. I. Khalilova / The National Bank of Azerbaijan (NBA) has promulgated the results of researches and studies of the money market of the country up to March 1, 2007. According to NBA, the extended money supply (М2), reducing on AZN 57.7 mln (or by 2.7 percent) had reached AZN 2.080.000 mln.
As compare with February, 2006, in February, 2007, the cash money supply (М1) increased by 5.3 percent, however, by January, 2007, it had reduced by 2.8 percent.
As compared with January, 2007, in February, 2007, the money supply (MO) cleared from season factors increased by 6.1 percent, and as compared with February, 2006 - increased in 2.7 times. Over this period, the cleared extended money supply (M2) increased by 5.5 percent against January, 2007, and grew up in 2.7 times as compared with February, 2006.
Certain qualitative changes for the better have occurred in the structure of monetary aggregates M2, and the significant growth in the monetary aggregates occurred mainly due to cashless turnover. The growth of manat term deposits and investments increased in 5 times, including long-term deposits, which increased in 2.7 times. Due to all this, the weight of М0 in the money supply has reduced from 69.1 percent in the beginning of the year up to 61.9 percent.
NBA has come to conclusion that due to the acceleration of financial innovations in the country, particularly, through introducing different payment systems, the indicators and showings, which are characterizing the capability of the banking sector of the country to earn money. As compared with the corresponding period of 2006, the money multiplier in AZN, increasing by 11.8 percent, reached 1.33.
MBA confirms the increase in the coefficient of monetization. Due to it, the weight of the extended money supply in the non-oil GDP to the end of February, 2007, increasing by 11 percent against February 2006, reached 20 percent.