The number of banks participating in note auctions held by the Central Bank of Azerbaijan (CBA) is increasing, Report informs, citing CBA.
"Monetary conditions continue to have a dampening effect on inflation. Appreciation of the manat's nominal effective exchange rate remains a significant factor limiting inflationary pressures. The rate of strengthening of the nominal effective exchange rate was 7.9% in 11 months. The expansion of sterilization operations reduces inflationary pressures by limiting the money supply growth. In 11 months, the monetary base in manat increased by only 7.3%. In December, the monetary base will be mainly affected by fiscal operations.
"In accordance with the new operating framework, placement of CBA notes of different durations (1, 3, 6, and 9 months) enables the formation of an adequate yield curve. The value of notes in circulation in October-November grew by 660 million manats ($388 million) or 2.3 times. The number of banks participating in note auctions is rising. During the period, 194 million manats ($114 million) transactions took place in the second market segment of notes," CBA stated.