Local banks called to jointly invest in exchange devices
By Fatma Babayeva
The banks were called to invest jointly in automated exchange devices in an effort to facilitate foreign exchange transactions for population.
Aydin Atakishiyev, a board member of PASHA Bank, made the statement in an interview with Trend on May 13.
Atakishiyev believes that it will help to expand the number of the currency exchange points, as well as, significantly reduce bank expenditures for the procurement of expensive devices and their maintenance.
Establishing a unified structure to serve these automated exchange devices will become topical after a while. The system can provide maintenance and encashment services.
Such devices already function in some banks. For instance, PASHA Bank has installed them in various hotels, Atakishiyev said.
In January exchange points, placed outside the bank's branches and departments were closed so that to decrease the pressure on the national currency.
Atakishiyev thinks that that was the right decision. "This decision of the Central Bank was aimed at decreasing agiotage and undue pressure on the national currency.
On the other hand, practice testifies for a necessity of exchange points to function outside the branches of the banks during the holidays and weekends, especially in densely populated places.
Atakishiyev said that in current circumstances it is unwise to increase the number of branches operating outside the banks, as would be quite costly.
Increasing the number of bank branches in the regions is not a feasible solution for the banking sector of the country amid the current need to increase the overall efficiency of the economy, as well as, the banking sector.
The banks need to function through a smaller network of branches with more use of tools for branchless banking, he stressed
More than 200 exchange points used to function in the country which was hard to control as the owners of currency exchange points did not always adhere to the relevant regulations and even sometimes, changed exchange rates in their own favor that caused the artificial shortage of currency which experienced during the period of devaluation of manat.
Moreover, banks received less income from the exchange points since maintaining them was costly. Rent for a place, payments for utilities, employee salaries and other expenses needed to be covered.
It is also necessary to take into account the security issue which is provided in a higher level at banks and their branch offices.
As all banks have passed into the retrenchment regime, taking income from foreign exchange operations may be beneficial.
Earlier, Zakir Nuriyev, President of the Bank Association of Azerbaijan and the chairman of the Supervisory Board at Rabitabank, said that Financial Market Supervisory Board examines the possibility of issuing licenses to legal entities which will allow them to fulfill currency exchange activities, as well as, providing an opportunity to the hotels to exchange currencies without creating exchange points.
Currently, 37 banks and more than 700 bank branches operate in Azerbaijan.
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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva
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