OREANDA-NEWS. December 30, 2009. The Central Bank of Azerbaijan has made a statement on major directions of its monetary policy for 2010.

The statement says that since 2010 it will begin applying macroeconomic instruments of counter-cyclic character.

“Next year the Bank plans to take the following moves to raise the level of risk management in banking sector: to continue policy of financial reservation and capitalization; to maintain liquidity; strengthen banking sector within the counter-cycling framework; to toughen supervision over quality of credit portfolios; to increase potential of corporate governance and risk management in banks,” the statement says.

In 2010 the CBA will introduce a new system of prudential reporting and integrated system of early warning, create a single model and develop standards of stress testing, start creating risk management incubator. The Bank also plans to continue support of consolidation and restructuring of banks.

Within the framework of its authority the Bank has set four challenges for 2010: inflation maintenance at low level; maintenance of manat exchange rate stability; keeping of stability of financial and banking sector; meeting of money demand of economic sector within the framework of inflation.

The CBA indicates that maintenance of manat stability has played its role in decrease of country’s inflation to 1.5%. The measures on maintenance of liquidity of economy and banks (the CBA ensured for them liquidity of 1.8 bn manats) played the role in Azerbaijan’s economic growth keeping.