BAKU, Azerbaijan, February 11. Azerbaijan will increase the depth of its capital market through the introduction of new financial instruments and digital solutions in line with the Financial Sector Development Strategy of the Central Bank of Azerbaijan (CBA) for the period covering 2024-2026, the CBA told Trend.
The bank has positively assessed the recent developments and dynamics observed in Azerbaijan’s securities market. This advancement has produced noteworthy outcomes, especially regarding the enhancement of market depth, the diversification of financial instruments, and the growth of the investor base..
"When evaluating the current state of the market, it is appropriate to refer to the actual trading indicators of the Baku Stock Exchange (BSE).
Based on the indicators for 2025, the volume of the primary market for corporate securities amounted to approximately 801 million manat ($471.1 million), while the secondary market volume reached 283 million manat ($166.4 million). These figures demonstrate a significant increase in transparency, liquidity, and investor activity in the capital markets in recent years. Although corporate bonds remain the main driving segment of the market, the growing number of transactions in shares indicates that the market is gradually deepening,” the CBA stated.
The Bank emphasized that measures aimed at introducing new financial instruments and promoting institutional market development are reflected in its Financial Sector Development Strategy.
“In the strategy, strengthening capital markets has been identified as one of the key priorities. Within this framework, the formation of sustainable infrastructure, expansion of market access opportunities, enhancement of investor confidence, enrichment of the range of investment instruments, and improvement of regulatory and supervisory mechanisms are envisaged. In line with the strategy, projects related to the implementation of alternative financial instruments such as securitization, derivative and repo instruments, sukuk, venture capital, and crowdfunding are ongoing,” the statement said.
It was also recalled that in October 2025, the European Bank for Reconstruction and Development (EBRD) carried out the first-ever issuance of a floating-rate bond in the local market and national currency, which can be regarded as an important indicator that Azerbaijan’s capital market infrastructure meets international standards.
“This floating-rate instrument, based on the AZIR (Azerbaijan Interbank Rate) benchmark, has created new opportunities for managing interest rate risks and increasing instrument diversity in the market,” the CBA noted.
The Central Bank has laid out its key priorities for the immediate future. The statement emphasizes that enhancing the involvement of both institutional and individual investors, boosting financial literacy efforts, and advancing digital solutions along with electronic trading opportunities will continue to be key priorities.
“Automation of processes and reduction of transaction costs will not only expand investors’ access to the market but also create conditions for increasing the depth and sustainability of the capital market. The measures implemented in this direction are considered by the Central Bank as part of a long-term and systematic development strategy,” the statement emphasized.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel