Since August of this year, Azerbaijani banks began storing required reserves according to new rules, as a result of which an additional 350 million manats ($205.882 million) of surplus were sterilized, Report informs referring to the Central Bank of Azerbaijan.
“At the same time, to regulate liquidity in the banking system, regular auctions with notes of different maturities continue. In total, within eight months, the CBA held 93 different auctions of fixed-term notes. Decisions on the interest rate corridor, changes in liquidity affect the average interest rates on transactions on monetary market. The weighted average interest rates on transactions concluded in the market of unsecured and secured money in national currency between banks for eight months (in particular, the 1D azir and 1W ainaib indices) responded to changes in the interest rate corridor. The analysis shows that interest on deposits legal entities in manats with interbank interest rates for individual banking groups are changing in the same direction. In general, tightening monetary conditions contributes to the growth of deposits in the national currency in the banking sector, and also contributes to the process of de-dollarization,” reads the statement.