New collective agreement on Bloomberg trading system enters into force in Azerbaijan

A new collective agreement on the conclusion of interbank unsecured credit transactions with manat through the Bloomberg trading system came into force in Azerbaijan, Report informs, citing the Central Bank of Azerbaijan.

According to the bank, work has been done to activate the interbank money market to create conditions for the effective implementation of the new operational framework. An alternative transaction platform has been proposed to activate the interbank money market.

Another important measure toward developing the interbank market is the application of the methodology for calculating reference interest indices. Calculation and disclosure of a representative interest index for operations in the money market will allow monitoring of the effectiveness of achieving the operational goals of the monetary policy. At the same time, representative interest indices for transactions in the interbank money market will serve as reference rates for the application of financial instruments such as loans, bonds, and derivatives.