BAKU, Azerbaijan, July 8. The sanctions on Russia have had a limited impact on Azerbaijan’s banking sector so far, Trend reports via the International Monetary Fund (IMF).
According to the IMF, the Azerbaijani banking sector’s exposure to Russia is limited but the situation needs to be monitored.
“As Azerbaijan’s exposure to Russia is non-negligible given Russia’s role as an important trading partner, Azerbaijani banks may turn to alternative systems. The authorities should closely monitor banks’ usage of alternative payment systems or cryptocurrencies,” the fund said.
“The authorities do not currently see any serious problems with correspondent banks in Russia and they are monitoring the situation closely. However, there appear to be some challenges with the correspondent banks in the US and Europe, including delays in processing payments,” the IMF also noted.
“While two-thirds of Azerbaijan’s banks have correspondent accounts in the US and European banks, some banks continue to have problems with accessing correspondent banking services,” added the fund.