Number of Baku Interbank Currency Exchange’s participants in Azerbaijan expands
Baku, Azerbaijan, Feb. 5
Trend - E. Aliyev
The number of banks participating in the guaranteed money market in Azerbaijan will increase to 12, Baku Interbank Currency Exchange (BBVB) told Trend on Feb. 5. Currently, 43 banks operate in the country.
The Guaranteed Money Market is one of four segments of the money market BEST.
"Currently, this segment comprises 11 banks. It is closed, and not every bank can become a participant. This requires not only the consent of all the existing members, but also the Central Bank, which in this segment of the money market is the guarantor of the obligations," the exchange said.
In addition to the Guaranteed Money Market the sector of the money market BEST consists of three more segments: the first one forms monetary indicators BakiBID and BakiBOR, the second - a segment of the deposit auction, where the participants can be commercial banks and insurance companies. The third one forms a segment of the limited money market on placement and fundraising.
The work on attracting new members - Azerbaijani insurance companies - to the money market was launched in April 2013. There has been reached an agreement with the insurance companies Atəşgah Sığorta, Buta Sığorta, Ata Sığorta and "Azsiğorta", and also with the only reinsurance company in the country AzRe. The insurance companies (there are eight insurance companies in the country) are potential suppliers of financial resources.
"Baku Interbank Currency Exchange (BBVB) is generally focused on development activities of the credit market in the country. We are trying to stimulate the activity of the participants, which is not at a high level. The reason is certain mistrust of the banks. At the same time, we are trying to "reach out" to participants and offer them new tools and also attract not only banks, but also insurance companies. We see the future of this market," the exchange noted.
The Guaranteed Money Market operates on the basis of the agreement signed on October 21st, 2009 between the Central Bank of Azerbaijan, Baku Interbank Currency Exchange, and a number of market-makers (DemirBank, AGBank, Nikoil, Bank Standard, Pashabank, Unibank and Bank of Baku).
Baku Interbank Currency Exchange (BBVB) was established in July 1993 on the initiative of the National Bank of Azerbaijan (currently the country's central bank), and the largest state-owned banks - Sberbank, Industrial-investment and Agro-Industrial (now merged into "Kapital Bank").
Regular trading on the Exchange started in August 1994.
Translated by R.A.
Edited by C.N.