Non-cash transactions grow in Azerbaijan
By Sara Israfilbayova
Non-cash transactions of banks in Azerbaijan amounted to $4.8 billion in the first quarter of 2018, which is 11.2 percent more than in January-March 2017.
Azerbaijan’s Central Bank (CBA) said in a report for the first quarter of 2018 that 84 percent of transactions in the non-cash foreign exchange market were carried out in the U.S. dollars, and 16 percent of transactions were carried out in other currencies.
Compared to the same period last year, the U.S. dollar non-cash transactions grew 12.4 percent, while euro non-cash transactions decreased by 12.1 percent.
Almost a third of non-cash foreign currency transactions (29 percent) were carried out in the interbank foreign exchange market, and 71 percent in the intrabank market. Over 50 percent of transactions in the interbank foreign exchange market were related to the regulation of the banks’ foreign exchange position.
Cash transactions of banks with currency in the reporting period amounted to $1.4 billion (annual growth of 80.3 percent). For the first quarter, banks sold $517.8 million and bought $594.2 million.
Banks purchased another currency (British pounds and Russian rubles) for $60.7 million and sold this currency for $24.7 million.
The law “On non-cash payments” was adopted in order to strengthen accounting in the financial system, through the development of non-cash payments.
The law envisages a limit for cashing operations. Banks and postal operators will charge a simplified tax (1 percent of the sum) for cashing of means kept in bank accounts of legal entities and private entrepreneurs.
Under the law, trade and public catering entities (registered as VAT payers), with the annual turnover exceeding 200,000 manats ($117,600) will have a right for limited volume of cash payments (not exceeding 30,000 manats ($17,600) per month), while a limit of 15,000 manats ($8,800) will be set for other taxpayers.
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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is
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