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Azerbaijan sees broad money on decline

25 May 2009 12:38 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. As of April 1, M2 broad money reached AZN 4 732.3 million, up 3.7% from a year ago, said the Central Bank of Azerbaijan.

However, M2 money supply declined by 22% during January-April this year.

M2 money supply includes total cash in circulation outside banks (M0), the amount in demand accounts, current accounts, term deposits in national currency.

Cash money supply which means cash outside the central bank (M0) made AZN 3 297.1 million, down 20.5% or AZN 848.9 million from year this year but up 15% from a year ago.

The share of cash money in M2 money supply was 69.7%, compared to 68.2% on January 1, 2009.

All money supply items were on decline during January-April.

(mln. AZN)

Money supply	01.05.09	01.04.09	01.01.09	01.05.08
M3 Money supply	6 502,4	6 397,4	8 494,2	6 549,9
M2 Money Supply	4 732,3	4 741,0	6 081,0	4 563,2
M1 Money Supply	4 109,5	4 088,3	5 145,0	3 702,5
M0 Money supply	3 297,1	3 304,1	4 145,7	2 867,5

M3 money supply includes M2 plus large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets.

M1 means currency in circulation + checkable deposits (checking deposits, officially called demand deposits, and other deposits that work like checking deposits) + traveler’s checks. M1 represents the assets that strictly conform to the definition of money: assets that can be used to pay for a good or service or to repay debt.