BAKU, Azerbaijan, Dec. 18
By Zeyni Jafarov - Trend:
The Azerbaijani monetary base has grown by 3.3 percent since early 2020, which is rather less than it was expected, Trend reports with reference to the Central Bank of Azerbaijan (CBA).
Although interest rates on deposit operations and short-term bills of the CBA remained stable from November through December 2020, the yield on state securities continued to decline.
There are no great changes in average interest rates in the interbank repo market.
Along with the decisions of monetary policy, macroprudential easing and state concessional lending programs have a positive impact on the dynamics of credit investments and average interest rates.
According to the CBA, the weakening demand for loans amid the pandemic affects the dynamics of deposit interest, which are the main source of the banks' resources.
So, there is a trend towards a decrease in deposit interest over the last months of 2020.
However, the transition of the deposit insurance mechanism to a new framework on stable conditions, along with strengthening the resource base of the banking system and maintaining financial stability, will have a positive impact on the formation of deposit interest.
The CBA concludes that the foreign exchange market remains stable and there is a decrease in dollarization indicators in a balanced foreign exchange market.
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