Financial institutions of Azerbaijan to be able to bid on money markets of other countries
Azerbaijan, Baku, April 27 /Trend A.Akhundov/
Financial institutions of Azerbaijan will be able to bid on the money markets of other countries.
The Baku Interbank Currency Exchange (BBVB) and the Moscow International Currency Association (MICA) signed a Memorandum of Understanding in Baku.
The agreement was signed by the head of BBVB Farhad Amirbekov and the head of MICA Alexei Mamontov.
The subject of the memorandum is cooperation based on equality of the parties to create conditions for the financial institutions of Azerbaijan and Russia to participate in the auction in the trading systems of BBVB and MICA - BEST (exchange electronic trading system), and DELTA.
BBVB plans to sign similar agreements with other countries that have developed trade relations with Azerbaijan, Amirbekov told reporters on Friday.
"Agreements can be signed with the countries where there are the interests of the Azerbaijani banks. Azerbaijan needs to develop a domestic money market through the efforts of not only a regulator, but the participants in this market. We understand that it will be impossible not to internationalize the domestic market. Manat - convertible currency and capital flows is free. We need to ensure high liquidity of the manat," Amirbekov said.
According to the document, BBVB is the only partner of MICA in Azerbaijan and vice versa.
The Moscow International Currency Association will provide advice to the BBVB in implementing the principles of e-commerce through money market methods which will enhance the liquidity, transparency and reliability of the money market instruments.
In the framework of the memorandum the residents of Azerbaijan are allowed in the trading system of Delta, concluding by signing a corresponding contract, and vice versa.
Under the agreement, the parties intend to:
- Identify the list of financial instruments of members of MICA and BBVB that will be available for trading under the trading systems of the parties;
- To assist each other in the development of advanced technologies aimed at the development of financial markets of both countries;
- Explore the possibility of settlement of transactions concluded between residents of Azerbaijan and the Russian Federation;
- Agree on a format and a list of information about the transactions concluded in the BEST and DELTA, as well as other information for the development of information services and so on.
Mamontov noted that MICA intends to attract Azeri banks to cooperate with Russia.
"MICA is aimed at the dissemination of ruble-denominated assets. Today a serious work with the ruble is implemented today, and we may see it as a regional reserve currency," Mamontov said.
Mamontov said Azerbaijani banks works a little with the ruble and Russian banks.
"The majority of transactions with Russian banks are reduced only to remittances. In addition, banks, mostly only work with their institutions in Russia," Mamontov said.
He added that many Russian banks are not familiar with the banking sector of Azerbaijan.
"One of the goals of the IV International Interbank Forum (IDF 2012), organized by MICA in Baku from April 26 to 27 was the convergence of these two isolated segments. many forum members have arrived in Baku for a few days before it starts in order to establish business relationships." Mamontov said.