Azerbaijan well prepared for global crisis: interview with Head of Baku Interbank Exchange

Azerbaijan well prepared for global crisis: interview with Head of Baku Interbank Exchange

Azerbaijan, Baku, March 19 / Trend , corr. N.Ismaylova /


Head of Baku Interbank Currency Exchange, Farhad Amirbeyov, spoke with Trend in an exclusive interview. 

Trend : How is it real to make trade operations between countries, for example with Turkey, in national currencies?

Farhad Amirbeyov: Realizing trade and other operations in national currencies is possible in following cases:

- national currencies must be freely converted;
- national financial markets must have a high liquidity and a depth. The protection tools of currency risks must be present;
- if necessary, the Central Banks must support the steady ratio of currencies, i.e., must pursue coordinated policy on the money and currency markets;
- business associations must present demand for the currency of the country, with which commercial and other operations are realized, this demand are accumulated by the banks;

- commercial and Central Banks must obtain free access to markets of those countries, whose currencies participate in the calculations in the regional trade;
- it is necessary to have the high-liquid and large markets for currencies.

Actually the currencies of the countries, which begin to participate in the international (regional) trade, acquire the features of reserve currencies. Due to this, it seems that still manat does not correspond to the requirements, presented to the currencies which are prepared attend international (regional) trade.

Q: How is this question urgent in conditions of global crisis?

A: With regards to the question of the urgency of strengthening national currencies and also possible appearance of new currencies, this question is not simple and obvious. The current crisis creates unique chance for the appearance of new financial centers in the world.  There is high probability that these centers will be formed in those countries, which know how to keep their currencies from the devaluation, and also can provide emitters with an access to capital. Moreover there is high probability that the present crisis will "kill" numerous transnational banks.

The countries, which can rapidly create high-liquid and deep markets, based on the national currencies, and also be rapidly integrated with the markets of their basic trading partners, will undoubtedly obtain large market and political advantages in the new, post-crisis world.

Q: What is the stage of process of establishing a regional financial center in Tbilisi? And how is the co-operation active with the Tbilisi Interbank Currency Exchange?  

A: As before, I consider urgent the project with Tbilisi Interbank Currency Exchange. However, firstly it needs to consolidate internal resources.

Q: What is your estimation of prospects of exchange question in Azerbaijan under current conditions?

A: This crisis is already third one in the newest Azerbaijan history. The crisis in the beginning and end of 1990 and the current crises strongly differ from each other both in their nature and in the consequences. Obvious is the fact that Azerbaijan with good preparedness approached the current world crisis. The National Bank of Azerbaijan and national banking system very rapidly reacted to the calls of time. It was understandable that it is impossible and dangerous to hope only for "resale" relative to the cheap resources, attracted from other countries to the local market.

It is necessary for Azerbaijan's market to have high-liquid money, currency and stock markets in order to compensate the influence of the current and future financial crises. The creation of these markets is impossible without the participation of State agencies, firstly National Bank of Azerbaijan, Ministry of Finance, State Securities Committee and participants of the financial market. Exchanges have always been very important institute of the financial market. Specifically, exchanges take the place between the money authorities (regulators) and participants of the market. Their role is not only to organize and conduct trades and accounts - they also frequently act as the catalysts of the matured changes and introduce numerous innovations.

Do you have feedback? Contact our journalist at: [email protected]

Number of enterprises launched in Iran's Fars Province increases
Number of enterprises launched in Iran's Fars Province increases
Iran ranked among states with high efficiency turbine tech.
Iran ranked among states with high efficiency turbine tech.
Iranian Energy Exchange announces products to be on sale on December 5
Iranian Energy Exchange announces products to be on sale on December 5
Loading Bars
Ex-French President Valery Giscard d’Estaing has died from coronavirus - family
Turakurgan TPP improving ecological situation in Uzbekistan
Putin orders Russia to begin large-scale COVID-19 vaccinations next week
France reports 14,064 new COVID-19 cases, 310 deaths
Germany extends COVID-19 restriction measures till January
Poland to start COVID-19 vaccinations as confirmed cases top 1 mln
First Vice-President of Brazilian Federal Senate sends letter to President of Azerbaijan
Kazakhstan's postal service operator opens tender to buy petrol
Kazakhstan decreases import from Canada twofold amid COVID-19
Number of enterprises launched in Iran's Fars Province increases
UK records another 16,170 coronavirus cases with 648 deaths
UAE launches satellite Falcon Eye into space
Azerbaijani, Russian FMs hold telephone conversation
Iran ranked among states with high efficiency turbine tech.
Kyrgyz ambassador and Secretary of Senate of Pakistan discuss inter-parliamentary cooperation
Restrictions mulled for New Year celebrations amid COVID-19 outbreak in Turkey
Georgian FM meets with Polish counterpart in Warsaw
Protesters in Yerevan demand Pashinyan's resignation (VIDEO)
Pfizer-BioNTech seeks full marketing approval from UK for COVID-19 vaccine
Kazakhstan eyes attracting latest US technologies in soybeans processing
Kazakhstan's Zhambyl to reduce energy-dependence by attracting investments in renewables
Germany reports record 487 COVID-19 deaths in 24 hours
Belarus reports 1,689 new COVID-19 cases, 139,908 in total
Azerbaijan eyes to use potential of liberated lands for fishery development
UN office announces agenda of special session of General Assembly on COVID-19 initiated by Azerbaijani president
Additional assets brought for Russian peacekeeping contingent delivered - Azerbaijani MoD (PHOTO)
Azerbaijan gains brilliant victory by liberating its lands - Chairman of National Congress of Azerbaijanis of Georgia
Azerbaijani Defense Ministry expresses condolences to Iranian side (PHOTO)
Deposit liabilities of Georgian banking system decreases month-in-month
Phase 3 of OPEC+ could lead to immediate fall in oil prices
Azerbaijan reveals TOP-10 private non-oil exporters
Iranian Energy Exchange announces products to be on sale on December 5
Azerbaijani banks to fully сancel loan debts of martyrs' families
Lending by Georgian commercial banks down
Iran reveals forecast for oil sales for next year
Lari depreciation remains one of leading factors in Georgian debt growth
Georgia decides to ease entry regime for its citizens
Aztelekom LLC announces tender for purchase of electronic spare parts
Bentley hires jets to fly car parts to Britain during Brexit
National Bank of Georgia reveals volume of international reserves
Georgia sees increase in overdue debt
Uzbekistan, Afghanistan eye to achieve twofold growth in trade
Russia discloses volumes of agricultural products supplied to Georgia
Azerbaijan's State Security Service prosecutes Lebanese terrorist mercenary (VIDEO)
Ashgabat City Telephone Network opens tender for audit
EU extends relief measures for COVID-hit loans to March
Turkmenistan expands international cooperation through environmental diplomacy
Iran expands mobile phone imports
Azerbaijani Clean City OJSC signs tender contract
Israel expects $220 million in non-defence trade with Bahrain in 2021
Azerbaijan determines damage inflicted by Armenia on Fuzuli, Jabrayil districts
Turkey to continue providing all kinds of assistance to Azerbaijan - Turkish Minister of National Defense
Iran’s Bahar Azadi gold coin price still rising
Employment increases in Iran's Sistan and Baluchestan Province
Azerbaijan reduces lead exports
Investment in tourism transport infrastructure to help dev’t this sector in Turkmenistan - UNWTO
Georgia expects to start adoption of Oil Stockholding Act soon
Iranian president declares budget revenues for next year
Uzbekistan’s Agrobank to fund entrepreneurial activity under Islamic sharia law
Tightening of quarantine regime may be inevitable - TABIB
Iran expects increase of budget revenues
Georgian CEC to summarize final results of parliamentary elections on December 3
COVID-19 pandemic to displace business class cars from car rental market
Azerbaijan unveils data on local insurers' fees for 10M2020
Building for Turkish-Russian joint monitoring center under construction - Turkish Minister of National Defense
Georgia cultivates significant amount of land to combat marble bugs
Uzbekistan’s Tashkent registers largest number of private enterprises
Tourism can help protect, promote Turkmenistan’s culture - UNWTO
Volume of sales through Azexport portal continues to grow
New electricity facilities to be put into operation in Iran
Japanese agency funds project aimed at improving locust control in Uzbekistan
Georgian oil company trying to contain fuel price rise
Uzbekistan, Germany in talks over partnership with EU
Value of OIC states' import from Turkey shows decline
Azerbaijan's non-oil exports via 'Single Window' system increase
SOCAR Polymer remains export leader in Azerbaijan's private sector
Georgia aims to transpose renewables acquis
Kazakhstan's crude petroleum oil exports to Greece plummet
Construction of Kerki airport passenger terminal being completed in Turkmenistan
Azerbaijan's AzerGold becomes one of export leaders in public sector
Trilateral statement on Karabakh to contribute to long-term peace in region - Kazakhstan's President
Kazakhstan discloses volume of doses to be produced by COVID-19 vaccine plant
ASTS+ trading, clearing system to up productivity of Kazakhstan Stock Exchange
Azerbaijan announces recent COVID-19 death rate
Iran reveals its COVID-19 data for December 2
Azerbaijan presents video footage from Lachin's Garygyshlag village (VIDEO)
Oil prices steady as market awaits output deal
Iran's export to Afghanistan increases
Prices of Kazakh-manufactured diesel fuel down
Azerbaijan's October 2020 non-oil exports slightly rise
Expenses on construction of enterprises in Iran’s Semnan Province climbs
Resources from Southern Gas Corridor to be available via Serbian-Hungarian pipeline
Iran's non-oil export has increases
Iron ore concentrate production of giant Iranian steel companies grows
Events in Belarus, Nagorno-Karabakh region, Kyrgyzstan complicate situation in CSTO area – Putin
Turkmenistan working on development of infrastructure for gas export
Uzbekistan’s State Tax Committee announces tender for IT services
Azerbaijan confirms 3,942 new COVID-19 cases, 2,265 recoveries
Azerbaijan shows video footage from Soyudlu gold deposit of Kalbajar district (VIDEO)
Turkish companies involved in construction of new road to Azerbaijan’s Shusha (Exclusive)
All news