Baku: The volume of notes issued by the Central Bank of Azerbaijan (CBA) saw a significant decrease, shrinking by 6.5 times over the past year.

According to Azeri-Press News Agency, this development comes as the CBA adjusts its monetary policy instruments in response to ongoing changes within financial markets and the liquidity position of the banking system. The Central Bank has notably reduced the extent of sterilization operations for 2024, taking into account the effects of fluctuations in government account balances on banking system liquidity.

The report highlights that in December 2024, the execution of budget expenditures contributed to a 1.7% rise in the monetary base. This increase subsequently led to a decrease in the average daily 1D AZIR index by 1.29 percentage points in January, settling at 6.39%. Despite these changes, activity within the unsecured market remains steady. In December 2024, the average daily volume of transactions in the unsecured money market was recorded at AZN 627.3 million, which declined to AZN 290 million during the first half of January this year.