Azerbaijan tightening control over storage of banks’ required reserves

By  Trend

Foreign currency deposits related to the required reserves of Azerbaijani banks should be stored on the foreign exchange correspondent accounts of the Central Bank of Azerbaijan (CBA).

This is required under the amendments to the “Procedure of Determining the Norm, Calculation and Placement of Required Reserves”, approved by the decision of the CBA Board May 30.

According to the amendments, deposits in Azerbaijan’s national currency and precious metals, included in the settlement base of banks’ required reserves, should be stored on the Azerbaijani manat correspondent accounts of the CBA, while deposits in foreign currency (related to required reserves) should be stored on any foreign exchange correspondent account of the CBA.

This change will come into force August 1.

Currently, the deposits included in the settlement base of banks’ required reserves can be stored on any correspondent account of the CBA, regardless of the type of currency.