Azerbaijani Central Bank To Actively Use Measures To Meet Monetary Policy Goals In 2025

(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 28. The Central Bank of Azerbaijan (CBA) will actively use the available tools to achieve the goals of monetary policy in 2025, the statement of the CBA on the main directions of the monetary policy said, Trend reports.

Meanwhile, it was noted that reforms to strengthen the anchor of alternative monetary policy will continue.

“In 2025, the bilateral exchange rate of the manat to the US dollar, which is also the main anchor of price stability, will be determined on the basis of the average rate on interbank transactions (taking into account auctions and off-auction operations,” the statement reads.

Moreover, the Central Bank will continue to hold auctions on implementation of the currency of the State Oil Fund of the Republic of Azerbaijan (SOFAZ).

“Based on the experience of previous years, depending on changes in currency demand and supply of the state, the Central Bank may continue operations on the sale and purchase of currency in the foreign exchange market next year.

The short-term money market interest rates will also be used as an alternative operational target for monetary policy in 2025. Special attention will be paid to the dynamics of the AZIR index, which reflects the weighted average interest rate on transactions in the market without collateral.

The methodology of calculation of benchmark interest indices will also be improved, taking into account the position of international organizations. To ensure that interest rates in the interbank money market move within the interest rate corridor of the Central Bank, the bank will adequately and flexibly use all instruments available in its arsenal,” the statement stresses.

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