Azerbaijan appoints banker Kazimov as central bank governor

0

April 13 (Reuters) – Azerbaijani President Ilham Aliyev on Wednesday appointed Taleh Kazimov, chairman of private bank PASHA, as central bank governor as the energy-rich former Soviet state faces pressure growing inflationary.

Kazimov’s appointment comes a day after lawmakers voted to sack Elman Rustamov, 69, who was head of the central bank of Azerbaijan, the third-largest ex-Soviet oil producer after Russia and Kazakhstan. , since 1995.

The statement on the central bank’s website announcing Kazimov’s appointment on Wednesday did not provide reasons for the governor change, citing only Aliyev’s order.

Join now for FREE unlimited access to Reuters.com

Register

Rustamov, who began working as an economist in the final years of the Soviet Union, steered the central bank through a number of crises, including a 2015 manat devaluation triggered by a drop in global energy prices. .

He introduced a floating monetary regime in manats to try to preserve foreign exchange reserves, after a similar move by Russia’s central bank amid Western sanctions imposed on Moscow after Crimea was annexed by Ukraine in 2014.

Rustamov also oversaw a $3 billion debt restructuring of Azerbaijan’s main lender, the International Bank of Azerbaijan (IBA), with a majority of liabilities held by foreign investors, after a slump in oil prices l left with bad debts.

Azerbaijan’s central bank last month raised its refinancing rate by 0.25 percentage point to 7.75%, and analysts expect a much bigger hike in key rates at its board meeting. administration on April 29, the same day as the Russian central bank.

Citing March annual inflation at 12.1%, well above the central bank’s target corridor of 4% with a gap of 2 percentage points, Gazprombank analysts said in a note that they are s were expecting a rise in key rates of no less than 100 basis points.

Join now for FREE unlimited access to Reuters.com

Register

Reuters reporting; Editing by Alexander Smith

Our standards: The Thomson Reuters Trust Principles.

Share.

Comments are closed.