Azernews.Az

By Ayya Lmahamad

The volume of strategic currency reserves of the State Oil Fund of Azerbaijan and the Central Bank have been increase, the CBA Board Chairman Elman Rustamov said during the press conference on July 30.

As of July 30, 2020 the volume of strategic currency reserves of State Oil Fund and Central Bank increased by 1.8 percent, or $5.4 billion, amounting to $51.53 billion. Some 87.4 percent of these reserves account for assets of the State Oil Fund.

Moreover, Central Bank decided to reduce the discount rate from 7 percent to 6.75 percent.

The lower limit of the percentage corridor is set at 6.25 percent, which was decreased by 0.25 percent too. While the upper limit of the percentage corridor was set at 7.25 percent, which was as well decreased by 0.25 percent.

The decision was taken in light of significant changes in the balance of risks and equalization of priorities to support economic activity and approaching the goals of macroeconomic stability since the last meeting of the Central Bank Monetary Policy Board.

Furthermore, it was noted that no significant changes have occurred since the beginning of the year, and annual inflation remained below the center of the target range at 3.3 percent.

Likewise, it was announced that within the next week, a decision will be made in connection with blocking of deposits of liquidated banks in Azerbaijan.

Rustamov noted that the Constitutional Court of Azerbaijan held a session in connection with the blocked deposits in four previously closed banks.

Additionally, Rustamov stressed that the internal process is underway, and more than 1,300 people will get access to their deposits.

On April 28, with the decision of the Board of the Central Bank of Azerbaijan (CBA) dated April 28, 2020, the licenses of Azerbaijan’s AtaBank OJSC and Amrahbank OJSC were canceled. On May 12, the licenses of AGBank OJSC and NBC Bank OJSC were canceled and the bankruptcy process was launched.

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