BAKU, Azerbaijan, June 19
By Eldar Janashvili – Trend:
Monetary base in Azerbaijan increased by 8 percent since late April 2020 and declined by 10.6 percent since the year’s beginning, Trend reports citing the Central Bank of Azerbaijan (CBA).
According to the CBA, monetary policy tools in Azerbaijan were introduced within the interest corridor. At the auctions organized by it for the placement of deposits and short-term notes, there was an excess of demand over supply, and the profitability on these instruments was approaching the lower limit of the interest corridor.
Over the past month, interest rates on new deposits in Azerbaijani manat, as well as on new loans showed variable dynamics for individuals and legal entities. It is expected that an increase in the maximum interest rate on deposits insured in manat starting from June 1 will have a positive impact on the country’s dedollarization processes.
The situation in the foreign exchange market remained stable in May. At the CBA-held auctions, demand, which was mainly related to imports, exceeded supply. Stabilization of the situation in the currency markets of the main trading partner countries of Azerbaijan is accompanied by stabilization of the dynamics of nominal and real effective manat rates.
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