Azerbaijani Central Bank talks targets of local monetary policy

By Trend

Monetary conditions in Azerbaijan serve to maintain an optimal balance between supporting economic growth and protecting macroeconomic stability, Elman Rustamov, board chairman of the Central Bank of Azerbaijan (CBA), said at a press conference on interest corridor parameters, Trend reports on Apr.30.

According to Rustamov, since late January 2021, there has been a slight decrease in nominal and real interest rates in various segments of the money market.

“Basically, the change in the monetary base since the beginning of the year due to the increase in the balance on the Single Treasury Account remains in the negative zone,” he said. “In these conditions, the volume of sterilization operations in order to maintain the liquidity of the economy was reduced.”

The head of the CBA also noted that a gradual recovery of lending activity continues in the country. The banking sector's loan portfolio increased by 1.4 percent in the first quarter, including business loans - by 1 percent, mortgage loans - by 4.4 percent, and consumer loans - by 0.5 percent.

"The extension of many macro-prudential relaxations until July 1 of this year provides additional support for a lending activity," Rustamov stressed.

In the conditions of stability in the foreign exchange market, dollarization continues to decrease both in deposits and in loans, which indicates an increase in confidence in the national currency, summed up the board chairman.