12:47 - 10.09.2025

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September 10, Fineko/abc.az. In Azerbaijan, monetary policy instruments are applied considering developments in financial markets and changes in the liquidity position of the banking system.

According to ABC.AZ, citing a press release from the Central Bank of Azerbaijan (CBA) on the key policy rate, interest rates in the unsecured money market have moved within the CBA’s interest rate corridor since the last session, with the gap between the AZIR index and the key policy rate declining to a historic low. The average daily AZIR index stood at 7.15% in July, 6.97% in August, and 6.98% in September. Since the previous meeting, the yield curve and yields on CBA notes have also declined alongside the AZIR index.

At the same time, interest rates on manat deposits for individuals have decreased. Deposit auctions conducted by the Ministry of Finance since April to place surplus funds in the Single Treasury Account continue to support the liquidity position of the banking sector.

In this environment, the CBA aims to minimize the impact of non-monetary policy factors on the AZIR index through one-week open market operations. Market activity remains high; over the first eight months of 2025, the number of transactions in the unsecured market increased by 19% compared to the same period last year.

Author: Elmir Murad