Central Bank of Azerbaijan

Central Bank of Azerbaijan
Azərbaycan Mərkəzi Bankı
Headquarters	Baku, Azerbaijan
Coordinates	40°22′43.18″N 49°50′43.39″E / 40.3786611°N 49.8453861°E / 40.3786611; 49.8453861
Established	11 February 1992
Governor	Elman Rustamov
Central bank of	Azerbaijan
Currency	Azerbaijani manat AZN (ISO 4217)
Bank rate	5.25%
Website	www.cbar.az

The Central Bank of Azerbaijan (CBA, Azerbaijani: Azərbaycan Mərkəzi Bankı) is the central bank of Azerbaijan Republic. The headquarters of the bank are located in the capital city Baku. Is established on the basis of the State Bank, the former USSR Promstroybank, the Agroprombank of the USSR pursuant to the Decree of President of the Republic of Azerbaijan on the Launch of the National Bank of the Republic of Azerbaijan, dated 11 February 1992.

History

The Charter of the Azerbaijan State Bank was approved on September 16, 1919 shortly after the establishment of the Azerbaijan Democratic Republicon May 28, 1918 and on September 30 the Bank started functioning.

The occupation of Azerbaijan by Bolshevik Russia on April 28, 1920 resulted in the liquidation of the existing financial-credit system of the country. The State Bank of Azerbaijan was renamed the Azerbaijan Peoples' Bank. All banks and other credit institutions were nationalized and merged to the Peoples' Bank. Thus, the banking business was exclusively monopolized by the state.

Article 14 – Banking System and Money Circulation – of the Constitutional Law on the Basis for Economic Independence of the Republic of Azerbaijan, dated May 25, 1991, stipulated the legal basis of the independent banking system and circulation of the national monetary unit of Azerbaijan, as well as set the status and authorities of the central bank.

The restoration of the state independence on October 18, 1991 set a legal basis for the launch of the banking system of the independent Republic of Azerbaijan, including the central bank.

In line with the Constitutional Law, at the Decree of President of the Republic of Azerbaijan on Launch of the National Bank of the Republic of Azerbaijan, dated 11 February 1992, the National Bank of the Republic of Azerbaijan was established on the basis of the State Bank, the former USSR Promstroybank, the Azerbaijani bank of the Agroprombank of the USSR.

The law on the National Bank of the Republic of Azerbaijan of 1992, 1996, and 2004 set, strengthened and developed the legal status and authorities of the central bank of independent Azerbaijan.

As a result of the National Referendum of 18 March 2009, the bank (“The National Bank of the Republic of Azerbaijan”) was renamed “The Central Bank of the Republic of Azerbaijan”.

Goals and functions

Under the Law of the Republic of Azerbaijan on the Central Bank of the Republic of Azerbaijan dated 10 December 2004, the primary goal of the Central Bank is to ensure price stability within its authorities. The goal of the Central Bank is also to ensure stability and development of the banking and payment systems.

In order to achieve its goals the Central Bank:

determines and implements monetary and foreign exchange policy of the country;
organizes cash circulation;
issues banknotes to and withdraws from circulation;
regularly determines and announces an official exchange rate of manat;
provides foreign exchange regulation and control under the legislation;
maintains and manages international gold and foreign exchange reserves in its charge;
develops a reporting balance of payments and participates in development of the projected balance of payments of the country;
licences and regulates banking activities and provides banking supervision in accordance with the law;
determines, coordinates and regulates activities and provides oversight of payment systems;

Structure and management

Organizational structure of the Central Bank includes the Management Board, the central apparatus and regional offices. The central apparatus of the Central Bank consists of internal audit division and other structural units, established by the Management Board. The Central Bank is governed by the Management Board, which consists of 7 members: the chairman, four members employed with the Central Bank on a permanent basis, and two external members. Members of the Management Board are appointed for 5 years. The Central Bank is solely accountable to President of the Republic of Azerbaijan.

Mission and ownership

CBA is Azerbaijan's monetary authority, and is responsible for the conducting the country's monetary policy and regulation of the banking and payment system. Primary objective of CBA as stated in the Act on CBA is price stability. Secondary objective is to support a banking and payment stability.^[1]

The CBA is owned by the Republic of Azerbaijan and managed by the Executive Board of the CBA. The Board is responsible for the supervising the administration and activities of the bank and for other statutory tasks. The bank is governed under the Act on the CBA, passed in 2004.

The bank has regional branch offices in Nakhchivan, Ganja, Yevlakh, Khachmaz, Goychay and Bilasuvar

Executive Board

The Executive Board is composed of the Governor, who is the chairman of the Board, and 4 members appointed in double process by President and the National Assembly.

Governor - Elman Rustamov

Board Members - Alim Guliyev, Aftandil Babayev, Vadim Khubanov and Khagani Abdullayev^[2]

Monetary policy

A limitation on FDI in the banking sector was reduced when the CBA increased the limit on participation of banks with foreign ownership from 30 to 50 percent of the commercial banking market. In June 2002, the NBA liberalized some overseas transfer provisions for Azerbaijani legal residents, including an increase of advance payments for import transactions from $10,000 to $25,000 and waiver of all restrictions for withdrawing foreign currency in cash.

During the world economic crises in 2008-2009 monetary policy orientation of Central Bank of Azerbaijan has strictly expanded: refinancing rate was cut down from 15% up to 2%, reserve requirement ratio form 12% up to 0.5%.^[3] In exchange rate policy CBA maintained financial stability holding a pegged regime against the US dollar, this regime ended in February 2015.^[4]

In postcrisis period some elements of economic overheating started to appear and Central Bank of Azerbaijan reacted with a tightening of monetary policy since Autumn of 2010. So, refinancing rate was gradually enhanced up to 5.25 percent.

References

↑ Act on the Central Bank of Azerbaijan Republic (in Azerbaijan language)
↑ http://en.trend.az/capital/banks/1655137.html Parliament approves candidates for Azerbaijani Central Bank's board members
↑ Chronology of main policy rate of Central Bank of Azerbaijan
↑ Chairman of the National Bank of Azerbaijan: Manat devaluation is not expected

External links

Central Bank of Azerbaijan (Azerbaijani) (English)

Baku landmarks

Famous and historic structures	Ichari Shahar Palace of the Shirvanshahs Bath Houses of the Shirvanshahs Bath Houses of Haji Gayib Maiden Tower Baku Khans' Palace Alley of Honor Martyrs' Lane Heydar Aliyev Cultural Center International Mugam Center of Azerbaijan Palace of Happiness Gulustan Palace Ismailiyya Palace Baku TV Tower Flame Towers

Places of worship	Bibi-Heybat Mosque Binagady Mosque Gardashlyg Mosque Juma Mosque Lezgi Mosque Muhammad Mosque Palace Mosque Saray Mosque Shahids’ Mosque Sheikh İbrahim Mosque Taza Pir Mosque Tuba Shahi Mosque Ateshgah Holy Myrrhbearers Cathedral Church of the Saviour Church of Michael Archangel Church of the Immaculate Conception

Nature and parks	Baku Bay Baku Archipelago Lake Boyukshor Baku Botanical Gardens National Park Mirza Alakbar Sabir Garden Philharmonic Garden Molokan Garden Baku Boulevard Samad Vurgun Park

Entertainment and recreation	Baku Crystal Hall Baku Ferris Wheel Buta Palace Heydar Aliyev Palace Baku Zoo Park Bulvar Children's World Baku State Circus Baku Water Park Baku Aqua Park

Cultural and art	National Library of Azerbaijan Azerbaijan State Academic Opera and Ballet Theater Azerbaijan State Philharmonic Hall National Art Museum of Azerbaijan Azerbaijan State Museum of History Independence Museum of Azerbaijan Azerbaijan State Museum of Musical Culture Nizami Museum of Azerbaijani Literature Baku Museum of Modern Art Baku Museum of Miniature Books Rinay Azerbaijan Carpet Museum House-Museum of Vagif Mustafazadeh Villa Petrolea Azerbaijan State Academic Drama Theatre Azerbaijan State Pantomime Theatre Azerbaijan State Russian Drama Theatre Azerbaijan State Theatre of Musical Comedy Azerbaijan State Theatre of Young Spectators Baku Puppet Theatre Green Theatre Rashid Behbudov State Song Theatre

Science and education	Baku State University Azerbaijan Technical University Azerbaijan Medical University Azerbaijan State Economic University Azerbaijan State University of Culture and Arts Azerbaijan University of Languages Azerbaijan Architecture and Construction University Khazar University Qafqaz University Baku Slavic University Odlar Yurdu University Western University Azerbaijan National Academy of Sciences Azerbaijan State Marine Academy Azerbaijan State Oil Academy Baku Academy of Music Asaf Zeynally Music College Baku Polytechnicum Jamshid Nakhchivanski Military Lyceum

Sport venues	AZAL Stadium Baku Aquatics Center Baku National Stadium Baku Shooting Center Baku Sports Hall Baku Tennis Academy Bayil Stadium Dalga Arena Bakcell Arena Heydar Aliyev Sports and Exhibition Complex Ismat Gayibov Stadium Karabakh Stadium National Gymnastics Arena Inter Arena Shagan Olympic Sport Complex Stadium Tofiq Bahramov Stadium Tofiq Ismayilov Stadium

Transportation	Heydar Aliyev International Airport Baku Railway Station Baku International Sea Trade Port Baku Metro Baku Funicular

Squares and streets	Azadliq Square Fountains Square National Flag Square 28 May Street Boyuk Shor Highway Istiglaliyyat Street Neftchilar Avenue Nizami Street Rashid Behbudov Street Tbilisi Avenue

Government and financial institutions	National Assembly Government House Presidential Apparatus Baku City Hall Central Bank of Azerbaijan Baku Stock Exchange Baku Expo Center

Category:Baku

Azerbaijan articles

History

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Central banks

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Authority control	VIAF: 130071671 GND: 16020380-6

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Central Bank of Azerbaijan

History

Goals and functions

Structure and management

Mission and ownership

Executive Board

Monetary policy

See also

References

External links