LAW OF THE AZERBAIJAN REPUBLIC

of December 10, 2004 No. 802-IIQ

About the Central bank of the Azerbaijan Republic

This law determines the status of the Central Bank of the Azerbaijan Republic, its task, function and power, and also managerial and organizational structures, governs its relations with public authorities and other faces as Central Bank of the Azerbaijan Republic.

Chapter I. General provisions

Article 1. Central Bank of the Azerbaijan Republic

1.1. Central Bank of the Azerbaijan Republic (further - the Central Bank) is Central Bank of the Azerbaijan Republic.

1.2. According to part II of article 19 of the Constitution of the Azerbaijan Republic, the Central Bank is in exclusive property of the state.

1.3. Tasks, functions and powers of the Central Bank are established by the Constitution of the Azerbaijan Republic and this Law. In the activities the Central Bank is guided as well by other legal acts of the Azerbaijan Republic and international treaties which the Azerbaijan Republic joined.

1.4. The central office of the Central Bank is in the city of Baku.

Article 2. Status of the Central Bank

2.1. Central Bank is public legal entity, it has seal with the image of the State Emblem of the Azerbaijan Republic and the name.

2.2. Central Bank has separate balance, authorized fund and other property. According to the legislation, the Central Bank performs rights of possession, uses and orders of property, being on its balance. Except as specified, the alienation of fund and other property provided by the Law, without the permission the Central Bank it is not allowed.

Article 3. The territorial offices and legal entities created by the Central Bank

3.1. Central Bank has the right to open territorial offices in the Azerbaijan Republic.

3.2. Due to the realization of the purposes and functions the Central bank has the right to create and participate in legal entities for the purpose of ensuring functioning of infrastructure of the financial markets, and also advanced training of the employees working in the financial markets.

Article 4. Tasks of the Central Bank

4.1. The main objective of the Central Bank is ensuring price stability within the powers established by this Law.

4.2. Central Bank without prejudice to the main objective provides financial stability within the powers established by the laws regulating the financial markets.

4.3. Profit earning is not the main objective of the Central Bank.

Article 5. Main functions of the Central Bank

5.1. Functions of the Central bank consist in the following:

5.1.1. determination and realization of monetary and course management of the state;

5.1.2. the organization of the address of cash, implementation of release and retirement of bank notes according to part two of article 19 of the Constitution of the Azerbaijan Republic and this Law;

5.1.3. regular determination and the announcement of the official rate of manat in relation to foreign currencies;

5.1.4. storage and management of the international gold and foreign exchange reserves which are available at its order;

5.1.5. creation of statistics on the monetary, financial markets and payment systems according to international standards and methodologies, creation of paying balance of the country, the international investment balance and survey (state and non-state) statistics of external debt, generalization and ensuring distribution of data, and also participation in forecasting of paying balance of the country;

5.1.6. ensuring stability and stability of the financial markets, implementation of regulation and control in the financial markets, including macroprudential regulation and control;

5.1.7. ensuring stable, safe and effective work of payment systems, support of their development;

5.1.8. taking measures to consumer protection and investors in the financial markets and carrying out educational work in the field of the financial markets;

5.1.9. implementation of currency control and control according to the Law of the Azerbaijan Republic "About currency control";

5.1.10. ensuring system operation of control in the sphere of deposit insurance;

5.1.11. implementation of other functions provided by this Law and other laws.

Article 6. Independence of the Central Bank

6.1. Central Bank is independent in case of accomplishment of the functions and powers determined by the Constitution and the laws of the Azerbaijan Republic, and at the same time any state body and local government bodies, physical persons and legal entities cannot limit directly or indirectly its activities on on any basis provided by this Law, except as specified when it cannot control its activities influence and interfere with violation of the law.

6.2. Central Bank has economic independence, and the means arriving from realization of its assets or the order them in other ways belong to its income. Except for the case, the stipulated in Article 14 these Laws, the Central bank does not answer for obligations the state, and the state does not answer for obligations the Central bank.

Article 7. Reporting of the Central Bank

7.1. Central Bank reports on the activities only to the President of the Azerbaijan Republic.

7.2. Accountability of the Central Bank before the President of the Azerbaijan Republic consists in the following:

7.2.1. in position assignment and dismissal of Board members of the Central Bank according to Item 10 of article 19 of the Constitution of the Azerbaijan Republic;

7.2.2. in position assignment and dismissal of the chairman of the Central Bank and its deputies in compliance Items 10 and 32 of article 19 of the Constitution of the Azerbaijan Republic;

7.2.3. in appointment of the auditor for check of activities of the Central Bank and, in case of need, carrying out audit inspection in extraordinary procedure according to article 58 of this Law.

7.2.4. representation by the chairman of National Bank to the President of the Azerbaijan Republic twice a year the performance report of the main powers and functions of the Central Bank, and also the annual, financial statement according to article 12-1 of the Law of the Azerbaijan Republic "About financial accounting, confirmed with audit opinion and the report on the reporting operating budget.

7.3. During discussion of the budget statement the Chairman of the Central Bank informs Millie Majlis of the Azerbaijan Republic on the main directions of monetary management for the next three years.

Article 8. Acts of normative nature of the Central Bank

8.1. Central Bank independently accepts regulations, obligatory for all subjects under control to it, and also other persons on the questions carried to its powers by the law.

8.2. Acts of normative nature of the Central Bank are entered in the State register of legal acts of the Azerbaijan Republic in the relevant organ of the executive authority according to the procedure provided by the Constitutional law of the Azerbaijan Republic "About regulatory legal acts".

8.3.  No. 1098-IVQD is excluded according to the Law of the Azerbaijan Republic of 28.10.2014

Article 9. International cooperation

9.1. Central Bank on the questions following from its purposes and functions can sign agreements on cooperation on its own behalf with Central Banks of foreign states, the international financial credit institutions and structures, the stipulated in Article 53-5 these Laws, and also agreements with the state and private clearing (processing) departments which are located abroad on clearing and calculations.

9.2. It is cancelled.

9.3. Central Bank takes part in the capitals and activities of the international and regional organizations aiming at cooperation in the field of monetary and course management according to the procedure, established by the legislation.

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