What will happen if the manat is redundant? - Warning about interference in interests and lending

17:18 - 10.09.2026


September 10, Fineko/abc.az. Excessive manat liquidity emerging in the banking system can lead to changes in interest rates and an uncontrolled increase in lending.

As part of this chain reaction, demand is artificially stimulated, which creates macroeconomic instability.

The Central Bank states that control over the volume of manats in the banking system during foreign exchange purchases is vital to maintain a healthy level of interest rates and the credit market.

Increasing foreign exchange reserves is not the only goal of the Central Bank.

Agency's main strategy is to maintain the right balance between the four key pillars - the exchange rate, liquidity, inflation, and overall financial stability.

The Central Bank emphasizes that its actions in the foreign exchange market are aimed not only at increasing reserves, but also at ensuring the long-term stability of country's economy.