OREANDA-NEWS. February 01, 2011. Management Board of the Central Bank of the Republic of Azerbaijan held an extensive meeting dedicated to the outcomes of 2010. The meeting attended by managers of departments of the entity and regional departments began with the opening speech of Elman Rustamov, Governor of the Central Bank, reported the press-centre of CBA.

He especially emphasized views of Head of the state, expressed at the meeting of the Cabinet of Ministers dedicated to the outcomes of social and economic development of 2010, on the successful resistance of Azerbaijani economy to the global crisis. The Governor also said that, Mr. President always stresses importance of macroeconomic stability in the economic development, the significant part in which belongs to the Central Bank, its monetary, exchange rate and financial stability policies.

E.Rustamov also noted that the past decade would remain in memories as a period of revival and development in the economic history of Azerbaijan. In general, according to the results of the last decade, the country’s economy has achieved the qualitative and quantitative development rarely experienced globally. The fact that during this period the economy grew by 4 times, exports – 15 times, currency reserves – 31 times may serve as an obvious example of this. This stable development was achieved under the conditions of macroeconomic stability – average annual inflation rate was 7 percent, average annual exchange rate of manat was about 1 percent. In such environment, key indicators of the country’s financial sector increased by 15-20 times as much. The Central Bank has implemented a series of strategic plans supporting economic development and business infrastructure of the country. A number of development institutions (mortgage, deposit insurance fund, card processing center, financial monitoring service etc.) were created.

It was also noted during the meeting, that in 2010 the CBA preserved macroeconomic stability in extremely difficult global economic environment. Macroeconomic stability, financial stability in the banking sector and results obtained in the sphere of economic growth demonstrate that the Central Bank has successfully coped with this responsibility.

Moreover, such issues as mortgage lending, management of foreign exchange reserves, state of the banking sector in the past strategic period, and other important tasks were extensively analyzed during the meeting. During the reporting period, the legislation on Financial Monitoring Service was improved, conservative management based upon the principle of safety in management of foreign exchange reserves was continued in 2010, the banking supervision directed its activities at preserving stability and ongoing development of the banking sector that is one of the primary mandates of the Central Bank, the Central Bank confirmed the status of effective banking regulatory institution, successfully withstood the crisis, preserved the financial stability and sustainability of the sector.

E.Rustamov also disclosed the objectives of the Central Bank for the next strategic period. E.Rustamov emphasized that the focus in the strategic period ahead should be on post-crisis development and that the Central Bank should be ready for it as the stability and anti-crisis institution. According to him, macroeconomic stability and particularly, price stability should be maintained in the current year as well. The Central Bank should support the government in implementation of such a long-term strategic line as development of the non-oil sector of the country, and economic diversification.

In 2011, the Central Bank should provide maintenance and management of financial stability in the banking sector, as well as increase promotion potential of the development of financial stability, international standardization of the organization and regulation of cash turnover. The priorities of 2011 also include modernization of the payment systems architecture, deeper integration of the activity of the Central Bank to all programs approved by the government with respect to the e-government concept.

General discussions once more demonstrated that the Central Bank has all means to achieve the goals set for the next strategic period, and in 2011, it will continue its contributions to economic development of the country.