Sources of monetary base were managed in coordination with relevant state bodies in nine months of 2017.
According to Central Bank of Azerbaijan’s (CBA) monetary policy review for January-September 2017, taking into account the expectations related to changes in exchange rate regime, increase of monetary base was limited in early 2017, stabilization was observed in dynamic of money supply after stabilization of exchange rate. Monetary base in manat increased 10.3% to AZN 8,671,200,000 as at the end of nine months. Cash money circulation rose 11.2%. Residual of correspondent account rose 5.5%. M2 board of money supply made up AZN 11,464,500,000 at the end of the reporting period, while it was AZN 11,546,300,000. Cash money supply grew 11.2%, manat deposits of individuals 30.6% and manat deposits of legal entities 22%.
Term deposits in manat declined 35.7%, demand deposits increased 4.8%.Individuals’ term deposits in manat ascended 21%. M3 board of money supply rose 1.2% to AZN 21,134,000,000.
Dollarization level of bank deposits remained unchanged.
Manat deposits of individuals increased 30.6%, deposits in foreign currency decreased 15%. As a consequence, dollarization level of individuals’ deposits fell to 71.8% from 79.6%.