“Introduction of the new methodology reflects the CBAR’s determination in market development and marks a milestone in the modernization of Azerbaijan’s financial markets,” said Nataly Mouravidze, the EBRD’s Head of Azerbaijan, APA reports.
With the new methodology, the CBAR aims to eliminate breaks in AZIR’s publication, reinforcing its continuous use as a benchmark rate and fostering deeper integration into other segments of Azerbaijani manat markets.
The new methodology introduces additional indices, i.e. compounded AZIR rates over 30, 90, and 180 days, and AZIR Compounded Index, with an aim to facilitate market’s use of the AZIR index in cash and derivatives products.
On 15 May 2025, the CBAR revealed the reformed AZIR, newly established compounded AZIR rates and the AZIR Compounded Index on its official website.
Since its introduction on 1 May 2023, the AZIR has become a pivotal indicator for monitoring monetary policy transmission. Since November 2023, CBAR has been actively managing the AZIR index within a predefined interest rate corridor, highlighting the strengthened role of the interest rate channel in its monetary policy.
The EBRD is a leading institutional investor in Azerbaijan, having invested around €4 billion in almost 200 projects across various sectors of the economy.
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