BAKU, Azerbaijan, Feb.19
By Zeyni Jafarov – Trend:
The balance of funds attracted by the Central Bank of Azerbaijan (CBA) through deposit auctions and auctions on placement of notes made up 950 million manat ($558.8 million) in 2020, Trend reports on Feb.19 citing the review of the monetary policy of the CBA.
From January through December 2020, the CBA held 62 deposit auctions and 46 auctions for the placement of notes.
According to the CBA, the balance of funds raised through deposit auctions as of late 2020 made up 300 million manat ($176.4 million), and through the placement of notes - 650 million manat ($382.3 million).
The CBA said that during the reporting year, demand exceeded supply at auctions on deposit operations and placement of notes, as a result of which the yield on these instruments was set at a level close to the lower limit of the interest rate band.
In 2020 the required reserve norms were kept unchanged. The continued application of the required reserve ratios based on the averaged mechanism has become one of the factors that have a positive effect on flexible liquidity management by banks.
According to the results of the monitoring, the aggregate balances of banks on correspondent accounts with the Central Bank for all months of 2020 exceeded the amount of aggregate funds to be kept as required reserves for the reporting period.
(1 USD = 1.7 manat on Feb.19)
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