2ND meeting of BICE with market-makers to be held next week
The Baku Interbank Currency Exchange (BICE) and the National Bank of Azerbaijan holds discussions on the development of the money market of the country, Farhad Amirbayov, the head of BICE told Trend. The development of the money market is very important stage for all financial market of the country, consisting of currency, loan and stock components, though at present they are insufficiently appropriate in the economic point of view, he said.
The money market is at its initial stage of development as compared with currency and exchange markets. The discussions holding with the National Bank of Azerbaijan (NBA) are of constructive character. BICE considers its role to develop trade system and establish business climate. The work is carried out jointly by a group of banks, agreed to undertake some obligations in this direction. 9 banks concluded a market-making agreement with BICE.
The first meeting of the working group was held at Nikoilbank in December 2005 with the participation of the representatives of NBA. The meeting achieved an agreement on holding of next meeting from late January to early February. Amirbayov supposes that the meeting will be organized at one of the market-maker banks next week. We will analyze little experience (over 1.5 month) and discuss reasons for non-implementation of the items, cited in the market-making agreement, he stressed. According to Amirbayov, there must not be temporary framework.
NBA participates in the meetings as observer, but supports BICE. The role of NBA in any segment of the financial market is particular and it can not act on the same rules as commercial banks, as for NBA it is opportunity to manage liquidity.
In 2005 only one swap deal was registered in relation non-existence of full-fledged money market.