Forecast: Reduction of money supply in broad sense to continue in Azerbaijan

Baku. 8 December. REPORT.AZ/ Volume of money supply in the broad sense in Azerbaijan amounted to 17 369.5 mln AZN on November 1, 2015, which is by 314.5 mln AZN or 1.8% less than October 1.

Report informs referring to the Central Bank, this figure compared to the beginning of the year decreased by 4 196 9 mln AZN, or 19.5%, from the same period of 2014 - 4 002 6 mln AZN or 18.7%.

The maximum amount of money supply in the broad sense in Azerbaijan was recorded in November 2014 and amounted to 21 689.8 mln AZN.

Volume of manat money supply in the broad sense amounted to 9 363 6 mln AZN on November 1, 2015, which is 5.3 mln AZN or 0.05% less than October 1.Since the beginning of the year, the rate declined by 8 072.2 mln AZN or 46.3%.Compared to the same period in 2014 a decline of 8 006 4 mln AZN or 46.1% recorded.It should be noted that the volume of manat money supply in the broad sense peaked in November 2014 and amounted to 17 525.2 mln AZN.

Analytical group of Report notes that over the past month rate of decline of manat money supply broadly declined, but last year there was a greater reduction compared to the total money supply in the broad sense (including foreign currency).It is expected that in the coming period, the volume of manat money supply in the broad sense established at around 9 bln AZN, and the total decline in money supply in a broad sense to continue to the level of 16 bln AZN.

Transferring of foreign currency savings in manats and investing them in the economy by population, and then the outflow of capital abroad through import operations will contribute to this.