CBA aims to align AZIR more closely with refinancing rate

Since the last meeting of the Management Board of the Central Bank of Azerbaijan (CBA) on the refinancing rate, short-term interest rates in the money market have remained stable, Report informs via the CBA.

Rates in the unsecured segment of the money market have been moving within the Central Bank’s interest rate corridor.

“In June, the average daily AZIR index was 7.03% and 7.15% in the recent period of July. Since April, deposit auctions conducted by the Ministry of Finance to place available balances from the treasury account have exerted upward pressure on banking sector liquidity. In response, the Central Bank has been sterilizing a significant portion of excess liquidity through one-week operations to align the AZIR more closely with the refinancing rate. Activity in the money market remains high. In the first half of 2025, the volume of transactions in the unsecured segment rose by 26%, while the number of transactions increased by 55% compared to the same period of the previous year,” the CBA stated.