By Azernews

By Ayya Lmahamad

Azerbaijan’s Central Bank (CBA) and China’s Banking and Insurance Regulatory Commission (CBIRC) signed a memorandum of understanding on cooperation, Azernews reports.

The memorandum envisages creating a legal basis for cooperation between the two institutions, strengthening relations, and enhancing the exchange of information and experience in the finance sector.

The document provides for the exchange of experience and information, the organization of training and seminars, and consulting services between the CBA and the CBIRC in the banking and insurance sector.

Moreover, the memorandum will serve to ensure mutual cooperation between supervisors, provide technical support, exchange experiences on global approaches to regulations, boost cooperation at the international level, as well as promote the development of the banking and insurance systems of both countries.

The diplomatic relations between the two countries were established on April 2, 1992.

Azerbaijan is China’s key trade partner in the South Caucasus region. In 2021, China became Azerbaijan’s 4th largest trading partner, with a trade turnover amounting to $1.7 billion.

Azerbaijan has a trade mission in China, trade and wine houses, trade branches in trade networks and measures are continuously taken to develop cooperation. In addition, there are companies with Chinese capital operating in Azerbaijan. Successful investment cooperation is underway.

Meanwhile, negotiations are underway with China on a number of industrial projects. Azerbaijan was one of the first countries to support China's "One Belt, One Road" initiative.