Growth in cash money supply continues in Azerbaijan

Baku. 14 February. REPORT.AZ/ Supply of cash in circulation amounted to 6 960,8 mln AZN as of January 1, 2017. 

Report informs referring to the Central Bank of Azerbaijan, money supply in circulation is growing for 3 months in a row. Thus, in October of last year, an increase made 96.9 mln AZN or 1.56%, 41.3 mln AZN or 0.66% in November and 628.6 mln AZN or 9.9% in December. As a result, cash money supply increased by 1 544 mln AZN or 28.5% compared to last year.

Notably, maximum limit of cash in circulation was recorded in July 2014 (11 144,4 mln. AZN). The current figure is below the maximum limit by 4 183,6 mln AZN or 37.5%.

Analytical Group of Report believes, absorption of a portion of the cash from market by CBA that creates demand for the currency in current economic environment and the sale of bonds in the securities market will impact on reduction of the cash money in circulation.