Law of the Republic of Azerbaijan on the Central Bank of the Republic of Azerbaijan

Azerbaijan

(enacted in 2004)

Law of the Republic of Azerbaijan on the Central Bank of the Republic of Azerbaijan determines the legal status of the National Bank of Azerbaijan Republic, its purposes, functions, responsibilities, including administration and organizational structure, and regulates the relationship between the central bank and other state authorities.

The law covers the following topics:

  • General Provisions:
    • Central Bank of the Republic of Azerbaijan;
    • Legal status of the Central Bank;
    • Regional offices of the Central Bank;
    • Goals of the Central Bank;
    • Functions of the Central Bank;
    • Independence of the Central Bank;
    • Accountability of the Central Bank;
    • Regulations of the Central Bank; and
    • International cooperation.
  • Central Bank Capital:
    • Capital of the Central Bank;
    • Profit of the Central Bank;
    • Distribution of the Central Bank’s profit;
    • Revaluation of assets and liabilities held in foreign currency and gold; and
    • Financial reliability of the Central Bank.
  • Relations of the Central Bank with state authorities:
    • Basis of the Central Bank’s relations with the government;
    • Loans of the Central Bank to the state;
    • Central Bank as the state bank;
    • Mutual relations of the Central Bank with state structures; and
    • Central Bank as a financial agent of the state.
  • Organizational Structure and Management of the Central Bank:
    • Organization structure of the Central Bank;
    • Management Board of the Central Bank;
    • Authorities of the Central Bank’s Management Board;
    • Management Board meetings;
    • Chairman of the Management Board of the Central Bank;
    • Premature termination of the Management Board membership;
    • Resignation of Management Board members; and
    • Internal audit.
  • Monetary Policy:
    • Monetary policy;
    • Instruments of monetary policy;
    • Open market transactions;
    • Fixing of interest rates;
    • Setting of required reserves;
    • Refinancing of credit institutions;
    • Deposit transactions; and
    • Restriction of banking operations.
  • Organization of Cash Circulation:
    • Monetary unit;
    • Organization of money circulation;
    • Issuance of bank notes to circulation;
    • Withdrawal of bank notes from circulation;
    • Interchange of notes; and
    • Destruction of banknotes.
  • Administration of Gold-Foreign Exchange Reserves;
    • International gold-foreign exchange reserves; and
    • Information on international gold-foreign exchange reserves.
  • Organization of Payment Systems:
    • Authorities in payment systems; and
    • Organization of settlements among credit institutions.
    • Relations with Credit Institutions:
      • Key principles of relations with credit institutions;
      • Licensing;
      • Regulation and supervision;
      • Lender of last resort;
      • Targeted lending to credit institutions;
      • Cooperation with credit institutions;
      • Cooperation with external regulatory and supervisory bodies;
      • Exchange of information; and
      • Settlement of disputes.
    • Transactions and Operations:
      • Transactions and operations of the Central Bank; and
      • Prohibited activities.
    • Financial Accounting and Reporting of the Central Bank:
      • Reporting year of the Central Bank;
      • Financial accounting and reporting; and
      • Audit of the Central Bank.
    • Final Provisions:
      • Central Bank personnel;
      • Confidentiality;
      • Immunity from claims;
      • Security;
      • Data acquisition;
      • Publications;
      • Exemptions; and
      • Effect of the law.

    The law includes all amendments through September 30, 2010.