“In connection with the fully liberalization of the exchange rate, we have chosen the volume of monetary base as the main target of the monetary policy. If you pay attention to the statement of key directions of monetary policy for 2017, you’ll see that we are already targeting the volume of the monetary base. Both liberalization of exchange rate and targeting of monetary base are preparation for switch to a inflation targeting regime in the mid-term period in the future. Special monetary programme has been adopted with the participation of members of the Financial Stability Board. The tightness is that the special monetary program takes control of all emission channels. The second direction is interest policy, which was sufficiently tightened. Interest rate increased up to 15% in 2016. It the condition needs, this instrument will be used”, Babayev said.
According to banking sector, the commercial banks will inform the regulator about the cash balances per day. Central Bank will carry out relevant assessment basing on this information.