Turnover of central bank‘s notes expected for increase

Turnover of central bank‘s notes expected for increase
# 08 October 2008 08:11 (UTC +04:00)
Baku. Vahab Rzayev – APA-Economics. The turnover of short-term notes issued by the National Bank of Azerbaijan has moved up for the first time since early this year.
The volume of notes in circulation reached AZB 100.8 million as at October 1, said Baku Stock Exchange.
While this figure is less than half the amount reached in January, the dynamics changed up in September.

The turnover plunged to the years’ low in September, reaching AZN 53.5 million. The increase in investment in notes is triggered by the central bank’s recommendations to commercial banks to limit lending consumer loans. The limitation of consumer loans increased liquidity which flowed into short-term notes market.
Consumer loans account for 37% of loan portfolio in banks and banks are not able to get rid of this problem in a short span.
That’s why, the short-term notes turnover is expected to further increase.
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