The Share of Foreign Currency in Money Supply Fell to Its Lowest Level in 14 Years
Money supply grew in June by 297 million or 2.6% to 11,753.7 million manat. Over the past 12 months, the volume of funds in manat in the economy grew by 3,018.3 million or 34.6%.
According to the Central Bank of Azerbaijan, the amount of cash outside the banking system increased in June by 241.9 million or 3.2% to 7,751.8 million manat, and non-cash increased by AZN 55.1 million or 1.4% to 4,001.9 million manat. The share of the latter in the structure of the manat treatment decreased to 34%.
Broad money contracted for the reported month by 51.5 million or 0.4%, and for the year it grew by 27.3% to 14,527.5 million manat.
The volume of foreign exchange supply in the banking system declined in June by 349 million or 11.2% to the equivalent of 2,773.8 million manat. Foreign exchange supply for the year increased 3.6%. The share of manat resources in the total money supply was 80.9%, up 4.4% compared to July 1 last year. Thus, the share of currency in cash for the first time for at least the last 14 years was less than 20%.
The total amount of the monetary base rose in June by 3.2%, and for the year it grew by 33.2% to 8,730.4 million manat. Manat money increased over the month by 281.3 million or 3.4% to 8,654.4 million manat. - 15B -
Economics
-
Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
-
According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
-
The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
-
"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
Leave a review