Central Bank makes changes to norms of mandatory reserves

11:50 - 10.01.2023

January 10, Fineko/abc.az. For more effective regulation of the money supply by the Central Bank of Azerbaijan (CBA), strengthening the influence of the interest corridor on interest rates in the financial system, limiting the concentration of liquidity in the banking system, as well as stimulating trends towards de-dollarization, it became necessary to revise the norms of the mandatory reserve and its differentiation.

ABC.AZ reports that the monetary base grew by 12.1% in 2022.

By CBA Board’s Resolution from 28 December 2022, the norms of mandatory reserves are defined as follows:

– 5% on deposits of individuals attracted in national currency and individuals engaged in entrepreneurial activity without forming a legal entity (hereinafter - individual entrepreneurs);

- 6% on deposits of individuals and individual entrepreneurs attracted in foreign currency;

- on deposits of legal entities in national currency.