By Ayya Lmahamad
The Central Bank of Azerbaijan and International Financial Corporation have signed an agreement under the project on “Electronic and digital financial services in Azerbaijan”, the bank’s press service reported on August 11.
The project envisages the creation of a regulatory framework for access to banking products and services, the development of a road map for the application of the open banking approach, the operation of the Instant Payment System, as well as access to banking products and services.
The joint cooperation aims to create a special regime of normative testing, which will allow banks and enterprises to test innovative financial services and products.
The project will develop financial services and payment systems in the country, increase access to digital financial services through more efficient and effective channels in remote areas with limited or no access to banking services, and thus contribute to the development of the digital payment ecosystem in the country.
It should be noted that comprehensive measures continue to be implemented in the direction of activities carried out by the Central Bank within the framework of the “State Program on expansion of digital payments in the Azerbaijan for 2018-2020”, approved by presidential decree on September, 2018.
One of the important innovations in this direction is introduction of new financial instruments for further expansion of the economy’s access to financial services within the cooperation of the Central Bank with international financial institutions.
Thus, International Finance Corporation is working to improve access to financial products and services, to increase access to financial resources in a more efficient and innovative way, and to improve financial inclusion through electronic and digital financial services.
It should be noted that the currency reserves of the Central Bank of Azerbaijan increased by 0.5 percent in July compared to June. As of July 30, the total currency reserves of the Central Bank amounted to $6 billion and 468.7 million, while at the end of June this figures was $6 billion and 436.3 million.
Additionally, the volume of strategic currency reserves of the State Oil Fund of Azerbaijan and the Central Bank have been increased. As of July 30, the volume of strategic currency reserves of State Oil Fund and Central Bank increased by 1.8 percent, or $5.4 billion, amounting to $51.53 billion. Some 87.4 percent of these reserves account for assets of the State Oil Fund.
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