Global crisis not to affect capital market in Azerbaijan

Business Materials 22 December 2011 17:40 (UTC +04:00)

Azerbaijan, Baku, Dec 22 /Trend I.Khalilova/

There are no direct channels to transfer processes in global financial markets to the securities market in Azerbaijan, State Securities Committee Chairman Rufat Aslanli said on Thursday.

"The main wave of 'hot money' invested in Azerbaijan's capital market and then left in early 2009 did not cause serious hazards or impacts." Aslanli said.

Foreign investors left the market of government bonds in 2009. Particularly, during the deepening crisis in world financial markets, foreign investors sold government securities issued in Azerbaijan amounted to $170 million and 120 million manat.

Aslanli noted that foreign investors are interested in Azerbaijani market today. They invest in certain instruments, including debt instruments and equities.

"But it's mostly long-term investments and they do not react to short-term market signals associated with various markets, including international ones," Aslanli said.

The second wave of crisis could lead to the fact that international financial markets could face a liquidity problem again, though central banks around the world are actively printing money and sending the money in the financial sector.

It may hold some local programs, plans to introduce several new tools, or inhibit growth, including institutional in global and Azerbaijan financial markets.

"However, I exclude some impacts associated with serious risks," Aslanli said.

The official Exchange rate on Dec 22 is 0.7863 AZN/USD.