Article 14 titled "The Banking system and money circulation" of the Constitutional Law of the Republic of Azerbaijan "On Grounds for Economic Independence of the Republic of Azerbaijan" dated 25 May 1991, stipulated the legal basis for the independent banking system and circulation of the national currency in Azerbaijan, and determined the status and authorities of the National Bank. The National Bank was declared a supreme emission agency, that pursued the state policy in lending, money circulation, settlements and foreign exchange relations, regulating the overall performance of the banking system and discharging reserve bank functions.