Azerbaijani Central Bank Repeatedly Cuts Notes Emission

(MENAFN- Trend News Agency) BAKU, Azerbaijan, January 22. The volume of notes emitted by the Central Bank of Azerbaijan (CBA) has decreased 6.5 times in 2024, Trend reports via the CBA's commentary on the decision on the discount rate.

“Execution of budget expenditures in December last year led to growth of monetary base by 1.7 percent. This caused the average daily 1D AZIR index to decline by 1.29 percentage points in January this year compared to December, amounting to 6.39 percent. Activity in the unsecured market continues. The average daily volume of transactions in the unsecured money market amounted to 627.3 million manat in December and 290 million manat in the last period of January this year. Monetary policy instruments are applied, taking into account the processes taking place in the financial markets as well as changes in the liquidity position of the banking system. Taking into account the impact of changes in balances of state accounts on the liquidity of the banking system, the CBA has significantly reduced the volume of sterilization operations since the beginning of the year,” the information says.

To note, on January 22, the CBA decided to leave the discount rate unchanged at 7.25 percent, while the upper and lower limits of the interest rate corridor also remained unchanged at 8.25 percent and 6.25 percent, respectively.

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