CBA: Volume of sterilization operations made over 50% of money supply

Baku. 7 March. REPORT.AZ/ Central Bank of Azerbaijan (CBA) has carried out sterilization of excess money supply to save money at agreed target level. In 2016 funds provided to support financial stability weresterilized by the CBA. Volume of sterilization operations made more than 50% of money supply. Thus, excess money supply has been prevented from entering the currency and commodity markets.

Report informs, 2016 report of Cabinet of Ministers says.

According to the report, "In fact, the monetary base has become an anchor of monetary policy operations.In general, the growth rate of the monetary base over the years was suitable for money Program. The growth of money supply channels (agreed in monetary program) to support financial stability, as well as the liquidity of the banking system and resources to ensure continuity of payments, the return of deposits of the population by banks that have been closed".

Notably, Central Bank's monetary policy decisions in 2016 were made on the basis of inflation risks assessment.