Weight of M2 in Azerbaijan’s Non-Oil GDP in March Reached 21.7%
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 April 1, 2007. According to NBA, the extended money supply (М2), increasing on AZN 45.9 mln. (or by 3.5 %), had reached AZN 2.217.200.000..
As compare with February, 2006, in February, 2007, the cash money supply (М1) increased by 5.5 %, however, by January, 2007, it had reduced by 2.6 %.
As compared with February, 2007, in April, 2007, the money supply (MO) cleared from season factors increased by 5.4 %, and as compared with March, 2006 - increased in 2.9 times. Over this period, the cleared extended money supply (M2) increased by 6.6 % against February, 2007, and grew up in 2.9 times as compared with March, 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 at the expense of the cashless turnover. The growth of manat term deposits and investments increased in 5.3 times, including long-term deposits, which increased in 4 times. Due to all this, the weight of М0 in the money supply has reduced from 69.1 % in the beginning of the year up to 61 %.
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, are improving. As compared with the corresponding period of 2006, the money multiplier in AZN, increasing by 112.7%, reached 1.33.
MBA confirms the increase in the coefficient of monetization in March, 2007. Due to it, the weight of the extended money supply in the non-oil GDP in March, 2007, increasing by 11.3 % against March, 2006, reached 21.7 %.