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Azerbaijan’s Central Bank significantly reduces note issuance volume

Finance Materials 18 December 2024 11:50 (UTC +04:00)
Azerbaijan’s Central Bank significantly reduces note issuance volume
Kamran Gasimov
Kamran Gasimov
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BAKU, Azerbaijan, December 18. The volume of notes issued by the Central Bank of Azerbaijan (CBA) has decreased by 4.6 times since the beginning of the year, Trend reports.

The reduction is outlined in the CBA’s recent statement regarding its refinancing rate decision.

"The 1DAZIR index for November and the current period in December has remained within the interest rate corridor, at levels of 7.66 percent and 7.79 percent, respectively.

Activity in the unsecured market remains high, with the average daily volume of operations in the unsecured money market reaching 627.3 million manat ($369 million) in November and 402.3 million manat ($236.6 million) in December.

Monetary policy tools are implemented with consideration of financial market dynamics and shifts in the banking system's liquidity position. In light of the effects of fluctuations in government account balances on liquidity, the CBA has notably scaled back its sterilization operations since the start of the year," the CBA said.

To note, the Central Bank of Azerbaijan (CBA) decided to keep the refinancing rate unchanged at the level of 7.25 percent.

According to the CBA, the upper and lower limits of the interest rate corridor also remained unchanged at 8.25 percent and 6.25 percent, respectively.

The decision to keep the interest rate unchanged was made based on actual and projected inflation within the target range (4±2%) and an analysis of macroeconomic trends.

Future decisions regarding the interest rate corridor will be based on actual and projected inflation, as well as the dynamics of internal and external risk factors. The Central Bank continues to analyze economic processes and monitor financial markets.

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