CBA: Activity in interbank money market is increasing

The activity in the interbank money market of Azerbaijan is increasing. On the Bloomberg trading platform, 69 deals were concluded between banks in September and 146 in October, while this number increased to 168 in November, the Central Bank of Azerbaijan said, Report informs.

“Some 93.6% of the deals concluded in November were short-term (1-3 days). The number of deals concluded in the interbank REPO market was 76 in November, which is 3.6 times more than in the previous month. In general, the volume of interbank transactions in September-November was 3.974 billion manats ($2.3 billion) on the Bloomberg trading platform and 305 million manats ($179 million) on the REPO. The decisions taken in the last meeting regarding the interest rate corridor were accompanied by an increase in the average interest rates in the interbank market. The average percentage of 1-day transactions in the unsecured market (Bloomberg) was 0.6 percentage points higher in November than in October. It shows that the transmission of monetary policy decisions through the interest channel has improved,” the bank said.

“In November 2022, credit investments by banks and non-bank financial institutions increased by 1% compared to the previous month, by 18.1% compared to the beginning of the year, and by 21.1% compared to the same month last year. In 11 months, business loans in the banking system increased by 12.7%, consumer loans by 27.7%, and mortgage loans by 21.9%,” CBA noted.