Finance

Finance

Azerbaijan sets up a new segment in the money market

28 October 2009 11:36 (UTC +04:00)

Baku. Vahab Rzayev - APA-ECONOMICS. The Central Bank of Azerbaijan (CBA), Baku Interbank Currency Exchange (BICEX) and money market market-makers have taken a step towards creating a new segment in the money market.

The BICEX said the mechanism with the involvement of the CBA will significantly reduce credit and settlement risks.

To this end, an agreement was signed by the CBA, BICEX and several market-makers (AzerdÉ™miryolbank, AGBank, Nikoil, Bank Standard, Pashabank, Unibank and Bank of Baku).

The BICEX said in a statement that the need for a fast developing domestic, reliable, highly liquid money market has become more crucial.

The CBA and the BICEX have been actively developing the organized inter-bank credit market since March 2002.

To further develop the monetary market, the BICEX signed arrangements with a number of commercial banks in 2005 to formulate the market-making in the money market.

The number of market-makers reached 10 and these banks place their bids to get and place credit resources in both national and foreign currency on the BEST system daily, and contributed to the formulation of the money market indicators such as BakiBID and BakiBOR.