Azerbaijani central bank not plans to change banknotes
Azerbaijan, Baku, May 6 / Trend I. Khalilova, N. Ismayilova /
The Azerbaijani Central Bank does not plan to issue new banknotes due to change of its name despite its old name - Azerbaycan Milli Banki (National Bank of Azerbaijan) was indicated at banknotes, the Central Bank's board chairman Elman Rustamov said on May 6.
"Banknotes are new, so there is no necessity in their change," Rustamov said.
Name of National Bank was changed for Central Bank in accordance with changes in the constitution of Azerbaijan. There will be no problems with use of these banknotes, he said. Referendum on amendments to the constitution was held on May 18.
"We do not plan to issue new banknotes in 2009," Rustamov said.
Earlier change of 1 and 5 manat banknotes by kopecks, as well as banknotes of higher nominal was discussed. It was planned to issue 200 manat banknotes.
Name of National Bank was changed for Central Bank because of its status. In practice, supervising agency is called the Central Bank in all countries. Commercial banks can be called national banks. Despite delay in the Central Bank's plans on new banknotes issue, current banknotes will remain in Azerbaijan till expiry of their exploitation term.
Exploitation term of banknotes hits 3-5 years but kopecks - 20 years. Presently, 1 and 5 manat banknotes are greatly used. Moreover, their exploitation term expires in 1.5-2 years not to become deformed. Their change by metallic kopecks was considered to reduce their often use and the Azerbaijani National Bank's expenses. It will be more stabile and suitable for these purposes.
As a result of denomination held by the Azerbaijani Central Bank, full change of old banknotes by new ones completed by December 31, 2006. Only new banknotes have been used in Azerbaijan since 2007. It allowed preventing difficulties for trade and economic individuals that might occur using 19 nominal banknotes.
Total volume of order for new banknotes hit 1.7 billion manat given reserve for 3 years. Roughly 94 percent of total volume of money hits banknotes (1, 5, 10, 20, 50 and 100 manat) and 6 percent - metallic money (1, 3, 5,10, 20 and 50 kopecks).
On May 6, current rate is 0.8036 manat to $1.
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