ACB an­nounces pa­ram­e­ters of mon­e­tary pol­icy

The Pak Banker - - Company& -

BAKU: The Cen­tral Bank of Azer­bai­jan has made a state­ment on the ba­sic prin­ci­ples of the pol­icy of mon­e­tary and fi­nan­cial sta­bil­ity in 2011.

Ac­cord­ing to the Bank, the tar­get frame­work of its strat­egy and mon­e­tary pol­icy will aim to neu­tral­ize the neg­a­tive ef­fects of the cri­sis, and in 2011 in ac­cor­dance with the CBA's man­date its mon­e­tary pol­icy will fo­cus on en­sur­ing macroe­co­nomic sta­bil­ity. On the ba­sis of macroe­co­nomic fore­casts, es­ti­mates of ex­ter­nal eco­nomic fac­tors and given the in­crease in oil rev­enues in 2011, the CBA con­sid­ers it ex­pe­di­ent the fol­low­ing ob­jec­tives: to keep an­nual (12month) in­fla­tion within sin­gledigit val­ues.

This re­quires co­or­di­na­tion with other eco­nomic or­ga­ni­za­tions, pre­ven­tion of sharp growth of ex­change rate of manat in ad­dress­ing sup­ply and de­mand of for­eign cur­rency, and for that it is needed to con­tinue in the long term the pol­icy of flex­i­ble ex­change rate as a ba­sis for con­trol over money sup­ply. In this con­text, grad­ual di­ver­si­fi­ca­tion of in­come in for­eign cur­rency, ex­change risks, devel­op­ment of in­surance in­stru­ments, re­duc­tion of dol­lar­iza­tion of the econ­omy, in­crease of the depth of the fi­nan­cial mar­ket, as well as con­trol over the ef­fect of real ex­change rate of manat on ex­port com­pet­i­tive­ness.

In its pol­icy the CBA will use flex­i­ble mar­ket-based in­stru­ments, such as pa­ram­e­ters of in­ter­est rate cor­ri­dor, the level of ac­count­ing rates. Reg­u­la­tion of liq­uid­ity in the bank­ing sys­tem will be im­ple­mented through short-term op­er­a­tions and long-term re­fi­nanc­ing will be ap­plied only in cases of ne­ces­sity. The mech­a­nism will be im­proved, depend­ing on the scale of the flow of "hot cap­i­tal" in terms of norms of min­i­mum re­dun­dancy and other stan­dards in the bank­ing sec­tor. Im­prove­ment of macroe­co­nomic ef­fi­ciency of in­ter­bank money mar­ket will con­tinue as well. -PB News

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.