Specific Weight of Expanded Money in Non-Oil GDP of Azerbaijan Comprises 26.2% in June
Azerbaijan, Baku / Trend corr I. Khalilova / The National Bank of Azerbaijan (NBA) publicized the results of the examination of Azerbaijan's money market for 1 July 2007. According to the NBA, the expanded national money (М2) increased by AZN 603.3mln (28.3%) making up AZN 2,743,000.
In June cash money mass rose 9.6% compared to May 2007 and 222.2% compared to June 2006, and 23.6% compared to the beginning of 2007.
In June 2007, money mass (M0) rose 12.2% compared to May and 2.4% compared to June 2006. In this period, the expanded money mass rose by 8.7% compared to May and 2.4 times compared to June 2006.
The structure of М2 experienced some quality changes. A dramatic increase in money aggregates occurred mainly owing to cashless circulation. Deposit accounts and deposits increased by 4.5 times, long-term deposits increased by 2.8 times. М0 increased by 2.4 times resulting in a decrease in specific weight of money from 69.1% to 62.8%.
The NBA came to the conclusion that due to the intensification of development of financial innovations in Azerbaijan, the indexes characterizing the ability of the bank sector in money earnings are improving. The money multiplier in AZN compared to the same period of 2006 increased in June by 14.4% making up 1.35.
The NBA confirms the increase of monetization in May. As a result, the specific weight of expanded money in non-oil GDP increased by 12.5% in June compared to June 2006 and comprised 26.2%.