Ulfat Yusifov

Central Bank of the Republic of Azerbaijan

On October 18, 1991, Azerbaijan restored its state independence. The Central Bank of Azerbaijan (CBA, Azerbaijani: Azərbaycan Mərkəzi Bankı) is the central bank of Azerbaijan Republic. The headquarters of the bank are located in the capital city Baku. In early 1992, former Soviet banks were incorporated into the National Bank of Azerbaijan; The 1992 Law on Banks and Banking Activity and the Law on the National Bank established the CBA as the top level of the new system and commercial banks (state and private) on the second level. However, in 1993 the system was undermined by poor technology, large unresolved debts among state- enterprises, irregular participation by enterprises, and bank delays in transferring funds. The main bank for the exchange of funds among private and state enterprises is the Industrial Investment Joint Stock Commercial Bank. According to results of the plebiscite in 19 March 2009 the National Bank of Azerbaijan has renamed as the Central Bank of Azerbaijan. CBA is Azerbaijan's monetary authority, and is responsible for the conducting the country's monetary policy and regulation of the banking and payment system. Primary objective of CBA as stated in the Act on CBA is price stability. Secondary objective is to support a banking and payment stability.