The banking sector’s exposure to Russia is limited but needs to be monitored, says the Concluding Statement of the International Monetary Fund (IMF) on the 2022 Article IV consultation from May 25 to June 7, 2022, in Baku, Report informs.

“The sanctions on Russia have thus far had a limited impact on Azerbaijan’s banking sector. However, as Azerbaijan’s exposure to Russia is non-negligible, given Russia’s role as an important trading partner, Azerbaijani banks may turn to alternative systems. The authorities should closely monitor banks’ usage of alternative payment systems or cryptocurrencies,” the statement says.

“The authorities do not currently see any serious problems with correspondent banks in Russia, and they are monitoring the situation closely. However, there appear to be some challenges with the correspondent banks in the United States and Europe, including delays in processing payments. While two-thirds of Azerbaijan’s banks have a correspondent account in the U.S. and European banks, some banks continue to have problems with accessing correspondent banking services,” the IMF staff team says.