Baku: The Central Bank of Azerbaijan has launched a securities lending program for the first time as part of its efforts to diversify the instruments used to manage its foreign exchange reserves and increase investment returns. The program took effect on 23 July 2026.

According to Azerbaijan State News Agency, the program will be administered by the Bank of New York Mellon (BNYM), the Central Bank's long-standing partner and global custodian. Under the program, BNYM will facilitate the short-term lending of debt securities from the Central Bank's investment portfolio in international financial markets. The total value of securities available for lending will be up to $1 billion.

The program is expected to generate additional income while maintaining the core reserve management principles of safety and liquidity. The Central Bank will continue to strengthen its foreign exchange reserve management framework and improve the efficiency of reserve management in line with the best international practices.