Apr 19, 2024 (MENAFN via COMTEX) --
(MENAFN - Trend News Agency) U.S., WASHINGTON, April 19. Cooperation withthe World Bank (WB) will further contribute to building a moresustainable economy not only in Azerbaijan but throughout theregion, said Taleh Kazimov, Governor of the Central Bank ofAzerbaijan, addressing the Constituency Meeting held as part of theIMF and World Bank Group (WBG) Spring Meetings in Washington,Trend reports.
He pointed out that aiming to secure sustainable, inclusive, andresilient growth Azerbaijan has set a determined course todiversify the economy.
"Significant progress has been made in this regard. Over thelast 20 years, the gross domestic product (GDP) has increased fivetimes. The export of non-oil goods over the last two decades hasincreased around 9 times. In 2023, the export value of the non-oilsector increased by 11 percent compared to 2022 reaching $3.3billion. Strategic foreign exchange reserves were estimated at$68.5 billion, marking a significant increase of 17 percent in2023. Azerbaijan's current account surplus amounted to $8.3billion, which is 11.5 percent of the country's GDP in 2023 to the base scenario of the CBAR forecasts projectionsfor current account surplus is around $7 billion, for foreign tradesurplus is $10.6 billion for 2024," said the Central Bank'sgovernor.
Kazimov went on to add that an annual inflation rate has beeneasing in Azerbaijan.
"In February 2024 twelve-month inflation stood at 0.8 percentand twelve-month core inflation stood at 1.4 percent. The indirectimpacts through imported goods prices have been the main source ofinflation in Azerbaijan over the past three years. In thepost-pandemic period, the increase in inflation of trading partnerspeaked at 22 percent in September 2022 and gradually halved within2023. However, for three years Azerbaijani nominal effective manatappreciated by around 15 percent per year, which was the primaryfactor in easing inflationary pressures. The CBAR projects annualinflation to be at 5.3 percent for the end of 2024," saidKazimov.
He pointed out that the CBAR has implemented a series of reformsaimed at enhancing monetary policy transmission.
"This includes the introduction of new monetary policy tools andthe support of interbank market development for improving monetarytransmission. For the first time, the CBAR has published thebenchmark rate indexes at the unsecured (AZIR - AzerbaijanInterbank Rate) and secured (AINA - AZN Index Average) segments ofmoney market. The yield curve estimated on government bonds hasbeen published on the website of the CBAR weekly for the firsttime. Due to these reforms, the weighted average interest rates onboth manat denominated unsecured and secured deals between banks inthe money market have stably moved within the interest ratecorridor of the Central Bank for the first time. These reformscontinue to amplify the transmission of short-term interest ratesin the money market to other interest rates including deposit andcredit rates," said the governor of Azerbaijan's Central Bank.
He noted that during this time, the stability of financialinstitutions, financial markets, and financial infrastructure havebeen ensured.
"The banks' high capital adequacy and liquidity positions whichhave been around 18% and 60% respectively over the last 2 yearsbeing two times more than the norms. The credit portfolio of thebanks has been experiencing steady growth of 17.9 percent over thelast 3 years without compromising price stability in the country loans has shrunk to 2.8 percent in February due tothe improved quality of credit portfolio. Significant progress hasbeen achieved in terms of de-dollarization. The foreign currencysavings of households to total savings has declined to 35.3 percentin February," said Kazimov.
He went on to add that the CBAR has unveiled for the first timea new strategy that focuses on the priorities of supervision andregulation in the banking sector, and the development plans of thefinancial sector.
"The strategic objectives of the"Financial Sector DevelopmentStrategy 2024-2026" include enhancing financial inclusion andencouraging depth and diversification of financial instruments,facilitating efficiency, safeguarding transparency, andstrengthening the resilience of the financial sector. Supportingprofessional growth of the market is at the core of the strategy strategy reflects our commitment to the transition towardssustainable finance, which will be an effective mechanism inaddressing climate-related risks on a systematic level," said theCentral Bank's governor.
Kazimov further noted that Azerbaijan was chosen to hostCOP29.
"2024 marks the 'Year of Solidarity for a Green World' inAzerbaijan. Hosting and leading COP29 recognizes Azerbaijan'sendeavors in addressing climate change not only at national, butalso at regional and global scale. Our role as COP29 Presidencyprovides an important opportunity to engage our internationalpartners to advance climate action for the benefit of our planet29 will prioritize finance as a critical enabler of action thathelps us to enhance ambition. We truly believe that the cooperationwith the WB will further contribute to building a more resilientand sustainable economy not only in Azerbaijan but throughout theregion," he concluded.
The Spring Meetings of the International Monetary Fund and theWorld Bank Group kicked off on April 15.
The main ministerial meetings and events will take place April17-19 with other events and activities taking place during theweek, April 15-20.
At the heart of the gathering are meetings of the jointDevelopment Committee and the IMF's International Monetary andFinancial Committee, which discuss progress on the work of theWorld Bank Group and the IMF.
The Spring Meetings bring together central bankers, ministers offinance and development, parliamentarians, private sectorexecutives, representatives from civil society organizations andacademics to discuss issues of global concern, including the worldeconomic outlook, poverty eradication, economic development, andaid effectiveness.
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COMTEX_451099743/2604/2024-04-19T17:48:16
