BAKU, Azerbaijan, May 15. The update of the Azerbaijan Interbank Rate (AZIR) index marks a turning point in the modernization of the country's financial markets, Nataly Muravidze, Head of the European Bank for Reconstruction and Development (EBRD) in Azerbaijan, said in an interview with Trend.
Muravidze highlighted the Central Bank of Azerbaijan’s (CBA) adoption of an improved methodology for the calculation and publication of indices, implemented with support from the EBRD.
She painted this innovation as a game changer and a leap forward in the journey of the country’s financial markets.
With technical backing from the EBRD, the CBA revised the methodology for calculating and publishing the AZIR index. The new approach includes compounded interest rates over 30, 90, and 180 days, along with a cumulative AZIR interest index.
These updates aim to provide the market with a reliable reference rate, support the growth of financial instruments denominated in the national currency, enhance the effectiveness of monetary policy transmission, and boost interbank market activity.
To note, the CBA has been publishing AZIR indices daily on its official website since May 1, 2023. The performance of the index over the past two years demonstrates the presence of an active interbank unsecured money market and effective liquidity management within the banking sector.
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