CBA to pursue flexibility rise policy

The Central Bank of Azerbaijan will pursue a strategy of flexibility rise in monetary policy, Elman Rustamov chairman of CBA was quoted as saying while addressing an event at Azerbaijan State University of Economics.

Rustamov gave thorough information about the macroeconomic stability, economic growth, development of non-oil industry, diversification of economy, monetary policy as well as capitalization of banks reached in the past 10 years.

“Azerbaijan has managed to preserve economic growth rates regardless recent developments in the region and drop of oil prices in the world market,” he said.

Rustamov also underlined that the country’s economy could improve through the development of non-oil sector. “The country’s economy has grown by 3-4 times, which is a high figure,” he added.

Rustamov also gave the information about integrated actions to be implemented by the CBA jointly with the country’s government mentioning that the preservation of financial stability in the banking sector is one of the issues of top priority. He stated that certain measures taken with a view of protecting deposits of the population are aimed at the upgrading deposits insurance system, strengthening positions of capitals and liquidity as well as stability of the banking sector.

Rustamov underlined that the development of non-cash payments, wider use of e-payment and innovative technologies in the payment sphere are among the most important objectives of the CBA.

“CBA will attribute an important role to such features as human capital, development and modernization of research and analysis base as well as control procedures. The bank is going to pursue a strategy which allows rising of the monetary policy, provides financial stability of the national economy and raises internationally its competitiveness,” he said.

Previously Rustamov mentioned that the CBA will increase efforts to improve stability of banks against risks in conditions of volatile economic environment in 2016 focusing on stress tests, which will be carried out to preserve financial stability and effective governance in the banking sector.

He also said that the bank planned to take additional measures jointly with the government to balance the foreign exchange market.

In 2015, some 43 banks carried out activities in Azerbaijan, and their number fell to 37 in January 2016.

Azerbaijan is currently engaged in the minimization of its oil dependence and diversification of its economy, which requires ensuring growth of non-oil sector of economy and increasing the volume of foreign investment in this field.

Official exchange rate of the US dollar and euro to Azerbaijani manat was set at 1.5240 manats and 1.7273 manats, respectively on June 21.