The purpose of the research - to analyze the role of the Central Bank in economic development by studying the mechanisms of influence of the operations and economic instruments on banking activity.

The methodology of the research - systematic approach, logical summarization, analysis, synthesis, statistical analysis, etc. methods were used in the research work.

The practical importance of the research - directions for improving the monetary policy of the Central Bank in the country were proposed, proposals were made to improve the banking system using economic instruments in the activities of banks.

The results of the research - proposals were made on the formation of a new mechanism of the Central Bank of the Republic of Azerbaijan to adapt the currency regime in the country to the latest standards. Directions for improving the activities of the Central Bank are determined and financial conditions for their implementation are considered.

The originality and scientific novelty of the research - in accordance with the experience of various states and interstate monetary settlements, the Central Bank should determine the latest priorities in the process of increasing economic development in the implementation of monetary policy in the country.

Keywords: economic instrument, credit, central bank, integration, improvement.