BAKU, Azerbaijan, December 28. The volume of interbank unsecured transactions through a special platform within the Bloomberg trading system in Azerbaijan from January through November 2023 amounted to 27.4 billion manat ($16.11 billion), Trend reports, referring to the Central Bank of Azerbaijan's (CBA) statement on the main directions of monetary policy for 2024.
CBA's data shows that 2,313 deals were concluded during the reporting period.
Activity in the secured money market segment was also observed during the reporting period. In 11 months, 1,215 transactions worth 4.5 billion manat ($2.64 billion) were concluded in the interbank repo market.
The CBA emphasizes that interest rates in both the unsecured and secured money markets reacted to the change in the interest rate corridor during the year.
"For the first time, average interest rates in the money market began to form within the Central Bank's interest rate corridor. For example, the average interest rate on operations with a term of 1-3 days in the interbank unsecured money market (1D AZIR) in December 2023 was 7.5 percent, while the average interest rate on operations with a term of 6–8 days in the interbank repo market (1W AINAIB) was 7.8 percent. According to the analysis, interbank interest rates on individual bank groups and interest rates on legal persons' deposits in manat move in the same manner. This shows that monetary policy choices are being transmitted more effectively through the interest rate channel," the CBA notes.
The CBA has launched monetary policy instruments in a new configuration since September 2022, including a special platform for unsecured transactions within the Bloomberg trading system.