Azerbaijani CBA Spotlights AZIR Index Drop Via Its Finance Ministry's Deposit Auctions

2025-06-11 05:08:11

(MENAFN- Trend News Agency) BAKU, Azerbaijan, June 11. The increase in the Azerbaijani banking sector's liquidity, thanks to the deposit auctions orchestrated by the Ministry of Finance to park the free balance of the unified treasury account in commercial banks starting in April, cast a shadow on the AZIR (Azerbaijan Interbank Rate) index, Trend reports via the Central Bank of Azerbaijan (CBA).

In the latter half of last year, the government account balance saw a rise that sent short-term interest rates climbing like a bat out of hell.

"In this situation, the CBA intensified open market operations, and a significant part of the increased liquidity was sterilized with one-week operations, which are becoming the main tool of the CBA. In order to increase the effectiveness of sterilization-oriented open market operations, changes were made to the operational framework of monetary policy, and the seven-day repo operation was replaced with a seven-day deposit operation.

Activity in the money market remains high. In the 5 months of 2025, the volume of transactions in the unsecured market increased by 1.6 times and the number by 1.8 times compared to the corresponding period of last year," the bank statement said.

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