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World Bank
The Republic of Azerbaijan became the member of the five institutions in the WB Group on the following dates:
- The International Bank for Reconstruction and Development – 18 September 1992
- The Multilateral Investment Guarantee Agency – 23 September 1992
- The International Center for the Settlement of Investment Disputes – 18 October 1992
- The International Development Association – 31 March 1995
- The International Finance Corporation – 11 October 1995
The CBA Governor is the Governor for Azerbaijan at the World Bank Group.
Azerbaijan cooperates with the World Bank within the Country Partnership Framework (CPF). The CPF is a partnership plan based upon needs and priorities determined by the Azerbaijani Government. The WB mission to Azerbaijan and the CBA management regularly meet and conduct consultations to analyze macroeconomic situation in the country, implement an effective monetary policy, as well as discuss joint projects.
The Central Bank is implementing various projects as part of cooperation with the World Bank.
The objective of the Financial Sector Modernization Project 3 is to boost Central Bank’s regulatory and supervisory abilities. The Project provides for consultations on strengthening of financial sector supervision and regulation, support for the implementation of the public financial inclusion program and financial sector monitoring.
The objective of the Project on Asset Based Financing is to formulate and implement a policy framework of the Central Bank on alternative financial instruments contributing to the improvement of access of SMEs to finance. The project provides for consultations on the study of international experience, assess the local market capacity, and establishment of the legal and regulatory framework.
International Monetary Fund
Azerbaijan became the IMF member on 18 October 1992. Governor of the CBA is the Alternate Governor for Azerbaijan at the IMF.
The IMF implemented the following programs in Azerbaijan:
- Poverty reduction and economic growth
- Elevation of structural building
- System changes
- Additional funding programs
The IMF experts pay regular visits to the CBA, which are fueled by different discussions on CBA policies aimed at decrease in the inflation rate in a short run, and stabilization of inflationary expectations in a medium run, the exchange rate and interest rate policies, intervention, and sterilization, increase in money base in manat, and a diversification plan for foreign exchange reserves and other issues.
Asian Development Bank
The Central Bank of Azerbaijan closely cooperates with the Asian Development Bank (ADB) and implement various projects as part of this cooperation.
The objective of the ‘Supporting Capital Market Development and Reform in Developing Asia’ project is to support market development reforms in Azerbaijan, Uzbekistan, and Mongolia. The project provides for consultations on the assessment of the domestic capital market and raising awareness on the capital market development.
The objective of the Establishment of National Credit Rating Agency project is to support the establishment of the local credit rating agency in Azerbaijan. The project provides for consultations on the study of international experience, the development of the legal and regulatory framework, and the formation of supervisory skills.
Swiss State Secretariat for Economic Affairs (SECO)
The cooperation between the SECO and the CBA dates to 2002, which led to technical assistance in real sector monitoring, financial programming, and management skills.
The cooperation with the SECO continues with the Bilateral Assistance and Capacity Building for Central Banks (BCC) program. The Central Bank and the SECO signed a Memorandum of Understanding on the implementation of the second phase of the program in 2019. The program provided for analysis and implementation of the monetary policy, financial sector development, macroeconomic statistics and forecasting and operational risk management.
Currently, cooperation with the SECO keeps going as part of the third phase of the program. The objective of the program is to transfer initial knowledge to develop opportunities and invest in bonds and other securities linked to Treasury Inflation-Protected Securities (TIPS) and establish a seasonal adjustment procedure based on baseline data. The program provides for consultations on the TIPS related theory, management and coordination between front, middle and back offices, investment management, and elaboration of the seasonal adjustment procedure.