Central Bank of Azerbaijan eyes softened money policies for 2021
BAKU, Azerbaijan, Jan. 31
By Zeyni Jafarov - Trend:
The Central Bank of Azerbaijan (CBA) has predicted softened monetary policies for 2021, Trend reports on Jan.30 referring to the CBA.
The CBA said that in order to more effectively manage liquidity in circulation within the framework of macroeconomic stability goals, from the beginning of 2021, the range of the Central Bank's sterilization instruments has been raised. So, it was decided to start holding auctions for the placement of 28-day, 84-day, 168-day and 252-day notes.
Besides, according to the CBA, supply is mainly influenced by the change in the balance in the single treasury account. It’s expected that in 2021, as in previous years, fiscal channels will have an amplifying effect on the monetary base.
The extension of macro prudential incentives to support businesses, households and the banking sector, affected by the COVID-19 pandemic, until April 2021 will also have an additional mitigating effect on monetary conditions, especially on lending activity.