The IMF recommends Azerbaijan to reduce the difference between loan and deposit rates

The Central Bank of Azerbaijan's recent decision to lower the discount rate has sparked widespread inquiries regarding its potential effect on the interest rates of loans issued by local banks. This follows a history where the discount rate was largely seen as an indicative tool rather than an active instrument of monetary policy.

In 2023, Azerbaijan demonstrated a trend in both attracting foreign direct investment (FDI) and placing domestic investments abroad. According to Friday's briefing by Samir Nasirov, Director of the Statistics Department of the Central Bank of Azerbaijan (CBA), the country has seen a significant increase in foreign direct investment indicators, which highlights a prosperous economic environment attractive to international investors.

The Central Bank of Azerbaijan (CBA) is actively working to increase the role of investment companies in the country's financial sector.

In the realm of global finance, the State Oil Fund of Azerbaijan (SOFAR) is poised to face a notable reduction in its assets, as projected by the International Monetary Fund (IMF).