Head of ABA Justifies Raising Bank Commission for Withdrawing Dollars from Manat Cards

The President of the Association of Banks of Azerbaijan, Chairman of the Supervisory Board of Rabita Bank, Zakir Nuriyev, justifies raising bank commission for withdrawing dollars from manat cards.

‘This is logical and necessary to prevent speculation. Businessmen having manat cards of several banks, take funds in dollars from them, and then sell foreign currency at a higher price. Overseeing the process is difficult, so, in order to reduce their interest to illegal business, banks have decided to increase the fee for withdrawing dollars from manat cards,’ he said.

Recall, from January 11 this year, when taking cash from plastic cards, the commission for conversion has been 4% and not 0.5%, as before. This measure was aimed at reducing the number of cash operations and to encourage non-cash payments. However, it has not brought tangible results, as state employees and retirees have mostly plastic cards, using them exclusively for cashing due to meager amounts in the account.

According to experts, Nuriyev had better say that the banks simply decided to make extra money out of the problem, as the increase in commissions will not prevent speculation due to the refusal of banks to sell the currency and the high demand for it among consumers. The consequence will be the further appreciation of the dollar against the manat in the ‘black market.’ --17D-