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CBA starts to strict money-credit policy

08 February 2011 09:52 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-economics. The Central Bank of Azerbaijan extends the proposals in short-term notes market and as a result of this, it returns to sterilization policy of free money in banking system, which is one of the methods on stricting of money-credit policy. According to APA-Economics, the note placement in January, 2011, rose by 3.6 times to AZN 48.9 mln and the growth tendency is expected to be continued.

Thus, CBAâ€™s real offer makes AZN 20 mln in the auction, to be held on February 9, and it is upper may times compared to a year ago.

At the same time, the demands of banks in those auctions exceeds the increased supply and these factors indicates that, the liquidity is at the extreme level, limitation of directions where the banks can direct their means and importance of stricting of money-credit policy.

Current YTMs on the notes are below 2%.