Application of USD/EUR Tool Begun in Azerbaijan
Azerbaijan, Baku, 13 March /corr. Trend I.Khalilova / Baku Inter-Bank Currency Exchange (BBVB) signed documents with Deutsche Bank-Frankfurt regarding the opening of account in EUR, said the Head of the Exchange, Farhad Amirbeyov, on 13 March. The account will be opened in the coming days. [USD account of BBVB was opened in Deutsche Bank - New York].
These events are being carried out because of the plans of implementing direct operations in the internal market at the tool of USD/EUR. Amirbeyov considers that National Bank's realizing double-currency basket for the account of exchange rate will stimulate increase of demand for EUR.
National Bank of Azerbaijan positively assessed the idea of establishing internal EUR market.
"I hope that the demand of not only private banks, but also National Bank of Azerbaijan will increase for EUR," Amirbeyov said. Yet the internal EUR market is not so large.
The inter-bank EUR market increased by 2.48 times - from 114mln to 324mln in AZN equivalent. In addition, the growth rate of EUR segment exceeded growth rate of inter-bank currency market by 11.5 times. Accordingly, the share of inter-bank operations on conversion of EUR during the year increased from 4.05% to 9.92%.
Considering the structure of import, Head of the Exchange considers that the demand for EUR in currency market of the Country may increase by several billions. According to Amirbeyov, significant part of the import operations in the external trade turnover takes place with the countries located in European zone.
In 2006, 11 deals with EUR were signed at BBVB, totaling AZN 497,009 (EUR 438,000). In 2007, 14 deals were signed in amount of AZN 19,841,494 (EUR 16,506,000). In 2008, seven deals were signed, amounting to AZN 4,292,349 (EUR 3,440,000).
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