Azernews.Az

By Aynur Jafarova

The currency reserves of the Central Bank of Azerbaijan (CBA) increased by 21 percent and amounted to $14.152 billion in 2013, CBA announce on January 13.

The currency reserves of CBA stood at $11.69 billion in 2012.

This figure was equal to $12.33 billion in the first quarter of 2013. The CBA's currency reserves increased by $387.8 million in the second quarter and hit $12.72 billion. The growth dynamics of the CBA's currency reserves remained at the same level in the second half of the year. In the third quarter the figure amounted to $13.26 billion.

CBA plans to increase the volume of its reserves to $16 billion by late 2014.

The monetary base in Azerbaijan demonstrated a steady growth in January-November as well. The CBA said in 2013, the expanded monetary base in the country amounted to over 10.895 billion manat.

The monetary base increased by 15.6 percent in a year. For comparison, this figure amounted to 9.427.3 billion manat in the first 11 months of 2012.

On December 1, 2013, the monetary base in manat amounted to over 10.787 billion manat while the volume of money in circulation amounted to about 10.373 billion manat.

Bank reserves were also equal to 500.3 million manat, which is 13.6 percent less than in November 2012.

The ratio of cash money mass in circulation to the monetary base amounted to 95.2 percent on December 1, 2013, compared to 93.6 percent on December 1, 2012.

Also, the Azerbaijani banks have increased lending to the economy by 24.51 percent in January-November 2013 and by 29.96 percent per annum.

The banks delivered loans totaling over 15.245 billion manat including about 10.927 billion manat in national currency and around 4.319 billion manat in freely convertible currency.

The capitalization of Azerbaijan's banking sector increased by 34.4 percent in January-November 2013 compared to the same period of 2012 and amounted to 3.32 billion manat on December 1.

The CBA said the number of banks with over 10 million manat worth of capital was 41 in the reported period, while their number was equal to 40 in January-November 2012. The specific weight of this category in the total volume of capital of all the country's banks amounted to 99.8 percent in the reported period.

Banks with capital ranging from five million manat to 10 million manat were absent in early 2013, while there was one such bank in the county's banking market as of November.

There were two banks with capital ranging from 3.5 million manat to five million manat in the reported period. The specific weight of this category in the total volume of capital of all the country's banks amounted to 0.2 percent.

The Central Bank's requirement for the minimal volume of the banks' aggregate capital is planned to be 50 million manat by late 2014.

CBA also said as of December 1, 2013, the Azerbaijani banks slightly reduced the rate on deposits in manat and in freely convertible currency.

The average rate on deposits in manat as of December 1, 2013 was 9.51 percent compared to 10.04 percent as of December 1, 2012. The average rate on deposits in foreign currency amounted to 9.7 percent compared to 10.2 percent as of early December 2012.

As of December 1, 2013, the average rate on individuals' deposits in manat was 9.87 percent compared to 10.37 percent as of December 1, 2012. The average rate on individual clients' deposits in foreign currency amounted to 10.30 percent compared to 10.84 percent as of early December 2012.

According to the report, as of early December 2013, the average rate on legal entities' deposits in manat was 6.04 percent compared to 6.74 percent as of December 1, 2012.

The average rate on corporate clients' deposits in foreign currency was 3.08 percent compared to 3.76 percent as of early December 2012.

The population's deposits, attracted to Azerbaijan's banking system from the country's regions (except for the capital Baku), stood at 475.6 million manats in January-November 2013.