Azerbaijan news

“Floating exchange rate”, “low interest rates”, unlimited currency sales …


The 38-year-old, who was introduced to the team on Thursday Taleh Kazimov is a macroeconomic expert in the country and He spoke about his goals such as maintaining financial stability and implementing a monetary policy that supports sustainable economic development, the Central Bank said.

He called for the development of the financial and banking system, further strengthening of the electronic payment eco-system, continuous improvement of the quality of cash circulation in the country. and quality financial services of every citizen of Azerbaijan, including banking and capital markets and He stressed that the tasks of coverage with insurance services will be “properly implemented.”

MP Vahid Ahmadov says that, parliament in the committee Taleh High when discussing Kazimov’s membership credit interest rates, as well as other problems observed in the banking sector: “Closed banks have debts to people. Entrepreneurs, especially small ones and medium entrepreneurs credit“Some banks have liquidity problems.”

Vahid Ahmadov says they recommended Taleh Kazimova that, to solve both the problems of concern to the population and the issues necessary for the development of the state Milli Work with the Assembly regularly.

Banking expert Akram Hasanov believes that, Serious reforms should be carried out in the field of control over financial markets, and control over the banking sector should be strengthened. But he adds that, not only is the activity of the Central Bank less, but the legislative base should be strengthened and the Banking Code should be adopted.

Can the manat become cheaper?

In the last years of Elman Rustamov’s leadership, the manat doubled to the dollar snowIn recent years, especially during the pandemic, the manat has managed to remain stable. Some analysts say the manat has been kept stable by administrative resources and The role of Elman Rustamov is emphasized here.

Analysts told the BBC that they did not see any pressure to devalue the manat. But banking expert Akram Hasanov hopes the manat will move to a “floating rate”.

According to him, the maintenance of the manat with administrative resources creates a “currency crisis” in the country. But it also adds that, it is now and not immediately, but gradually.

MP Vahid Ahmadov believes that the manat will continue to maintain its stability, citing high oil prices on world markets, including the availability of sufficient foreign exchange reserves in Azerbaijan.

But Vahid Ahmadov says that, RussiaUkraine war can affect world market prices and This can lead to price increases and inflation in the country.

High interest rates on bank loans

Akram Hasanov believes that, As a result of the fiscal policy pursued by Elman Rustamov, lending by the Central Bank in the banking sector occurred on a “monopoly criterion” and This also violated the competition between banks: “Non-bank credit organizations generally did not lend. Relevant legislation according to while the Central Bank to the banks and provide loans to non-bank credit institutions at its discount rate.

Because it does not, banks that can get loans at the Central Bank’s discount rate are not interested in lowering such interest rates, because there is no healthy competition.

MP Vahid Ahmadov does not directly link the high interest rates on bank loans in the country with Elman Rustamov, but in his opinion, this is one of the problems in the banking sector. and so Milli This issue was also raised during the discussion of Taleh Kazimov’s membership in the Board of the Central Bank at the parliamentary committee meeting:

“Where does credit come from: there are three bases: people’s deposits in the bank, loans from the Central Bank and foreign financial institutions. In Azerbaijan, 75-80 percent of bank loans are deposits. 10He accepted a deposit of -12 percent and covered his expenses 20 They lend at interest, of course that, it is extremely difficult to repay such an interest-bearing loan. All this will be discussed. “

Alleged “restriction” on currency sales

Economist Togrul Valiyev believes that, monetary policy should be regulated and Restrictions on currency trading should be removed:

“The Central Bank loves restrictions. From abroad and With regard to foreign payments, currency purchases… we feel them in our daily lives. This is a conservative approach, as if the Central Bank is restricting everything that, not to take risks. These restrictions must be relaxed. “

About two years ago, Azerbaijani banks began restricting the sale of foreign currency and asking customers to fill out forms. This is shown on the form that, 20 equal to one thousand manat equivalent and In case of an operation in the amount of or more, a document on the source of funds must be submitted to the bank.

Banks viewed this as a recommendation of the Central Bank. However, the Central Bank said that “foreign exchange market policy is liberal” and described the limit as a “precautionary measure” by banks.

Azerbaijan news

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