Azerbaijan’s currency reserves increase by $3bln in 2009: CBA head
Azerbaijan, Baku, Jan. 22 / corr Trend N.Ismayilova /
Timely measures carried out by the Central Bank of Azerbaijan (CBA) enabled to remove tension taken place in the country's banking sector in the beginning of 2009, CBA Managing Board Chairman said to a meeting of the Cabinet of Ministers. Azerbaijani President Ilham Aliyev presided over the gathering which was dedicated to the socio-economic results of 2009
On conditions of deepening the global financial crisis the banking system was imposed to some foreign risks. In pre-crisis period the aggregate assets of the Azerbaijani banks reached $13 billion.
"The CBA took several preventive actions, particularly restricted the foreign borrowing, which many countries failed to take timely. Their foreign debts reached 50-100 percent of the GDP, while during crisis the money was called for repayment. Increase of foreign debts in Azerbaijan was ceased on the level of 5 percent of the GDP, because we introduced obligatory reserving norms. The action made money expensive and the banks ceased growing them in such rapid speed," Rustamov underscored.
These actions enabled to relax tension, observed in the first quarter of 2009. Generally, the banking assets rose by 14 percent, loan by 17 percent, savings by 23 percent, and capital by 18 percent.
Under its anti-recessionary policy the CBA focused mainly on achieving three goals: preservation of macro-economic stability, ensuring financial stability of banks and enterprises of system significance, support economic growth and high employment rate. Another important element of the policy was the maintenance of stability of manat rate.
In 2009, strategic currency reserves of the county increased by $3 billion to over $20 billion.
"I think this is the highest achievement in crisis period. This is also an unusual achievement, because the stability of national currency and maintenance of macroeconomic stability in the country was observed amid increase of strategic currency reserves," Rustamov said.