CBA to pur­sue flex­i­bil­ity rise pol­icy

Azer News - - Business - By Ni­gar Ab­basova

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.

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