Association of Banks Suggests Cabinet of Ministers of Azerbaijan Take Measures to Improve Liquidity of AZN

The Association of Banks of Azerbaijan (ABA), to enhance the liquidity of AZN, has offered to place 5% of the assets of the State Oil Fund (SOFAZ) in the national currency, the head of the Azerbaijan Bank Training Center Javanshir Abdullayev told the media.

According to him, it will not affect the currency market, but these funds can be directed to the development of the priority areas for the government. The proposal is included in a special package, prepared and submitted to the Cabinet of Ministers.

Another proposal in the framework of increasing the AZN liquidity is the creation of a state fund for hedging, as the country's banks have more than $ 2 billion in foreign exchange reserves. Thus, in the fund, banks would be able to exchange foreign currency for AZN, putting it in the development of the real sector of the economy.

According to the expert, the banking sector needs new, desirably foreign, shareholders and the state support, but it is for the prospects of growth. In the meantime, at least until the end of the year, the level of dollarization in the banking sector of Azerbaijan will be extremely high. --17D-