The Central Bank of the Republic of Azerbaijan has started using securities lending for the first time from July 23, 2026, as part of its foreign exchange reserve management strategy. The move is aimed at diversifying the tools used to manage reserves and increasing returns. The program will be operated by the central bank’s long-term partner and global custodian, Bank of New York Mellon. Under the arrangement, up to USD 1 billion of debt securities held in the central bank’s portfolio may be lent on a short-term basis in international financial markets. The central bank said the program is designed to generate additional income while preserving the safety and liquidity principles that govern reserve management. It also indicated that it will continue measures to improve its reserve management framework and support more efficient reserve management in line with international best practice.
Central Bank of the Republic of Azerbaijan2026-07-24
Central Bank of the Republic of Azerbaijan begins securities lending program for up to USD 1 billion of debt securities
The Central Bank of the Republic of Azerbaijan has begun using securities lending from July 23, 2026 as part of its foreign exchange reserve management strategy. Bank of New York Mellon will operate the program, which allows up to USD 1 billion of the central bank’s debt securities portfolio to be lent on a short-term basis in international markets. The bank said the arrangement is intended to raise additional income while maintaining reserve safety and liquidity.