The volume of the interbank unsecured market, which was 787.5 million manats in September 2022, increased more than six times, reaching 4.9 billion manats in August 2023, Taleh Kazimov, governor of the central bank of Azerbaijan told Global Finance, Report informs.
"This indicates that there is a great perspective in this segment of the interbank money market," he added.
According to him, one of the key priorities on the reform agenda has been the development of an interbank money market:
"We focus on three key dimensions: 1) the development of infrastructure, 2) encouraging the participants - banks - to be active in the market, and 3) the formulation of the benchmark short-term interest rates. I think we have accomplished a lot in those areas."
Moreover, the AZIR index, as a short-term benchmark interest rate, has been formed for the unsecured market.
"In parallel, the interbank secured market was also developed, and the AINA index was formed for this purpose. More information on monetary operations and those indices is available on the official website of the central bank. Our ultimate goal is to steer short-term interest rates within the monetary policy corridor and influence long-term interest rates," Kazimov added.