Fi­nan­cial Sta­bil­ity Board: De-dol­lar­iza­tion of na­tional econ­omy pos­si­ble

Azer News - - Nation - By Amina Nazarli

The Cen­tral Bank of Azerbaijan has an­nounced that sta­bi­liza­tion in the coun­try’s for­eign ex­change mar­ket had an ad­e­quate ef­fect on the na­tional cur­rency, the manat, thus cre­at­ing a ba­sis for the begin­ning of the dedol­lar­iza­tion of the econ­omy and keep­ing in­fla­tion at an ac­cept­able level.

The is­sues of macroe­co­nomic and fi­nan­cial sta­bil­ity were dis­cussed dur­ing the meet­ing of the Fi­nan­cial Sta­bil­ity Board un­der the chair­man­ship of Prime Min­is­ter Ar­tur Ra­sizade on April 18, the CBA re­ported.

The meet­ing was at­tended by mem­bers of the Fi­nan­cial Sta­bil­ity Board: Azer­bai­jani pres­i­dent’s aide on eco­nomic re­forms Natig Amirov, Min­is­ter of Fi­nance Samir Shar­i­fov, Econ­omy Min­is­ter Shahin Mustafayev, Chair­man of the Cen­tral Bank El­man Rus­ta­mov, Chair­man of the Fi­nan­cial Mar­ket Su­per­vi­sory Body Ru­fat As­lanli and Ex­ec­u­tive Di­rec­tor of the State Oil Fund Shah­mar Mov­sumov.

The meet­ing par­tic­i­pants noted that since Jan­uary 2017, the monthly in­fla­tion be­gan to de­cline, while the manat strength­ened to a cer­tain ex­tent. In ad­di­tion, the eco­nomic growth rate be­gan to re­cover.

"Since early 2017, the ef­fec­tive tac­ti­cal co­or­di­na­tion of mon­e­tary, ex­change rate and fis­cal poli­cies has been en­sured, and a pro­gram has been launched to op­ti­mize the vol­ume of the money sup­ply. The in­ten­si­fi­ca­tion of ster­il­iza­tion op­er­a­tions con­ducted by the CBA played a sta­bi­liz­ing role in neu­tral­iz­ing the neg­a­tive ef­fect of ex­ces­sive money sup­ply on the cur­rency mar­ket and the manat rate, "the CBA said.

The par­tic­i­pants fur­ther noted that work to im­prove the frame­work of fis­cal and debt pol­icy has cre­ated a fa­vor­able macro-fis­cal base for strength­en­ing the sus­tain­abil­ity of the bud­get in the medium term. In the first quar­ter, mea­sures aimed at en­sur­ing macroe­co­nomic and fi­nan­cial sta­bil­ity, in­clud­ing the bal­ance of the cur­rency mar­ket, cre­ated the ba­sis for making im­por­tant de­ci­sions for the tran­si­tion to a float­ing ex­change rate.

The sta­bi­liz­ing ef­fect on the for­eign ex­change mar­ket was pro­vided by mea­sures on putting debt obli­ga­tions, left from past years, be­yond the macroe­co­nomic frame­work, as well as im­prove­ment of the cur­rency regime, lim­it­ing of im­ports, and stim­u­la­tion of ex­ports.

They em­pha­sized the im­ple­men­ta­tion of com­pre­hen­sive mea­sures to en­sure the sus­tain­abil­ity of the fi­nan­cial sys­tem, mea­sures to im­prove the In­ter­na­tional Bank of Azerbaijan and the cap­i­tal­iza­tion of the Azerbaijan De­posit In­sur­ance Fund in the first quar­ter.

The meet­ing par­tic­i­pants agreed that a pol­icy aimed at en­sur­ing macroe­co­nomic and fi­nan­cial sta­bil­ity should be con­tin­ued un­til the end of the year.

The Fi­nan­cial Sta­bil­ity Board was es­tab­lished on July 15, 2016. The CBA ex­er­cises the author­ity of the sec­re­tar­iat of the Coun­cil.

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