These measures will both add to the capitalization of banks and draw extra liquid funds. At the same time, trust in the banking sector will grow. The Central Bank today is unable to increase liquidity all of a sudden. Rather this process will go on gradually as the GDP increases. In order for the GDP to increase, there has to be more investment in the real sector. If the Central Bank issues additional manats into circulation, it will affect the currency market to some extent. We have proposed that 5% of SOFAZ assets be invested in national currency. It has no impact on the market. These funds can be directed at projects prioritized by the government. Another way to increase manat liquidity is to create a hedging fund in government, through which banks would be able to convert their dollars into manats and direct them towards the real sector. On the other hand, a new official corridor of manat rate has to be formed. Such a corridor could increase people in confidence. Either of these two is recommended,” Abdullayev said.
13:17
Baku. Musa Ahmadov – APA-Economics. Banks are impossible to leave difficulties behind without a support, Director of the Azerbaijan Bank Training Center (ABTC) Javanshir Abdullayev said at risk management forum titled “Vision to the future: risks faced by Azerbaijani banking sector and challenges”.
“Development of real sector needs manat. If the Central Bank issues manat, it may cause additional tension. The Association of Banks has submitted proposals to the government to increase the manat liquidity”, Abdullayev said.
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on Facebook
Follow us on Twitter
