BAKU, Azerbaijan, November 13. Azerbaijan’s interbank unsecured market continued to show strong activity in the first nine months of the year, Trend reports, citing the Central Bank of Azerbaijan (CBA).
According to information, a total of 2,864 contracts worth 51.9 billion manat ($30.5 billion) were concluded between banks through the Bloomberg trading system during the mentioned period. About 95 percent of these operations had maturities of 1-3 days. The number of contracts increased by 16 percent compared to the same period last year.
“The one-day interbank unsecured rate, the AZIR index, fluctuated within the interest rate corridor and stayed close to the central bank’s policy rate throughout the nine months. The spread between the AZIR index and the policy rate improved quarter by quarter, narrowing from -0.4 percent in March to -0.2 percent in June and -0.04 percent in September. The standard deviation of the AZIR index from the policy rate stood at 0.32 percentage points for the nine months,” the AMB noted.
Alongside the unsecured market, short-term benchmark rates in the interbank secured repo market also closely tracked the AZIR rate, reflecting liquidity conditions and transaction intensity. In September, the average rate for 6-8 day operations in the secured repo market (1W AINAIB) reached 6.25 percent," the report added.
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