World Financial Crisis Not Affects Interbank Crediting Volume in Azerbaijan

Business Materials 28 October 2008 15:15 (UTC +04:00)

Azerbaijan, Baku, 28 October   Trend , corr. N.Ismayilova /"Introduction of new tools in the Baku Interbank Currency Exchange (BICEX) is unlikely due to the world financial crisis," Farhad Amirbayov, the General Manager of BICEX, told Trend .

"Exchange is an anti crisis mechanism, as more reliable accounts are held and transparent deals signed in the exchange area," Amirbayov said.

The tools of currency market - currency swap, which still is not used by BICEX in the trade system, is the most demanded in the current situation.

Despite the crisis situation affected the crediting volumes in the banking sector of the country, certain slight up has been observed in the centralized credit market.

"We do not see sharp cut in the number of deals, which are registered on the BEST trade system. On the contrary, significant increase has been observed in 2008 compared to the previous year," Amirbayov said.

BCEX forms the one and efficiently functioning domestic high-tech currency market with equal access for all participants and wide range of tools. Now, approximately half of the operating banks in the country hold active trade on the interbank crediting market. These banks advance operations and deal numbers on the organized currency market. The average volume of each deal is AZN 1.5-2mln, the most demanded is the borrowing for 60 days term. "The currency market, particularly, the interbank credit market turned into significant tool, which will enable banks to manage liquidity efficiently," BCEX head said.

The Baku Interbank Currency Exchange was established by the National Bank, as well as International, Savings, Industrial and Investment and Agrarian banks on 26 July 1993.

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