Weekly review of events in Azerbaijani financial market

Finance Materials 17 January 2021 20:27 (UTC +04:00)
Weekly review of events in Azerbaijani financial market

BAKU, Azerbaijan, Jan. 17

By Zeyni Jafarov - Trend:

At the beginning of this week, the Central Bank of Azerbaijan (CBA) announced about the issue of renewed banknotes in the country, Trend reports.

New banknotes – 1 manat (58 cents), 5 manat ($2) and 50 manat ($29) are planned to be put into circulation during January 2021.

The latest technologies and innovations have been applied in the design and security systems of the renewed banknotes within the existing concept. The CBA also stressed that the renewed banknotes – 1 manat, 5 manat and 50 manat will be in circulation along with the banknotes of the corresponding denomination which are already in circulation.

This week, the CBA sold $142.2 million to the banks at a foreign exchange auction held with the participation of the State Oil Fund of Azerbaijan (SOFAZ), which is by twofold more compared to the previous figure. The CBA stressed that the growing demand for cash currency is temporary and will soon subside.

Deposit auctions of the CBA will be held when liquidity requires it. The auctions for the placement of CBA’s notes will be mainly used to regulate liquidity from 2021.

The preference has been given to the auctions on notes due to the further development of the interbank monetary market. Thus, the presence of notes in the portfolio of banks increases the possibilities of carrying out secured transactions in the monetary market.

Last week, the Azerbaijani State Statistics Committee announced about the indicators of the state budget for 2020.

Azerbaijan's state budget revenues amounted to more than 24.7 billion manat ($14.5 billion), which is by 1.9 percent more compared to 2019. The state budget expenditure last year is estimated at 26.4 billion manat ($15.5 billion), which is by 8.2 percent more than in 2019. As a result, a deficit in the amount of 1.7 billion manat that’s $1 billion (2.4 percent of GDP) was formed in the budget in late 2020.

The consumer price index increased by 2.8 percent, including food, beverages and tobacco products - by five percent, non-food products - by 1.3 percent, paid services to the population - by one percent in 2020 compared to 2019.

The Baku Sigorta insurance company was included in the register of the Azerbaijani Compulsory Insurance Bureau last week. Thus, the number of insurance companies that are members of the Compulsory Insurance Bureau has reached 16.

Baku Sigorta will render services in compulsory real estate insurance, civil liability insurance while using real estate and compulsory civil liability insurance of motor vehicle owners.

The outgoing week was also remembered by the strengthening of the Azerbaijani manat compared to the euro and an increase in prices for precious metals.