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Growth of monetary aggregates observed in 9M2020 - Central Bank of Azerbaijan

Finance Materials 23 November 2020 18:35 (UTC +04:00)
Growth of monetary aggregates observed in 9M2020 - Central Bank of Azerbaijan

BAKU, Azerbaijan, Nov. 23

By Zeyni Jafarov - Trend:

The dynamics of changes in monetary aggregates was variable from January through October 2020, Trend reports citing the review of the monetary policy of the Central Bank of Azerbaijan (CBA).

“In connection with the formation of a surplus in the state budget of Azerbaijan, the money supply decreased significantly as of late March 2020. However, since the second quarter of 2020, a gradual increase has been observed in monetary aggregates and a moderate growth trend continued throughout the months of the third quarter of this year,” said the report.

According to the report, over the first nine months of 2020, the monetary base in manat increased by 0.6 percent and by the end of the period amounted to 12.2 billion manat ($7.17 billion). The volume of cash in circulation (M0), which is a structural element of the monetary base of the manat, increased by 5.2 percent in the reporting period, and the balance of correspondent accounts in manat decreased by 7.2 percent.

As indicated in the review of the CBA's monetary policy, the broad money supply (M3) for the first nine months of this year increased by one percent, reaching 18.4 billion manat ($10.8 billion).

The monetary indicators of the CBA at the end of October this year are as follows: foreign exchange reserves - $6.5 billion, and the monetary base - 12.1 billion manat ($7.11 billion).

(1 USD = 1.7 manat on Nov. 23)

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