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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006
BAKU INTERBANK CURRENCY EXCHANGE
Farkhad Amirbekov
General Manager of BBVB
One more important mission, which has
had a long preparation is the gradual
transformation of Baku as the financial
center of region. In my opinion, for this
purpose there are many preconditions.
The BBVB work is directed toward becoming
an integrated part of a market economy and
in particular the development of the financial
market of Azerbaijan. Today, BBVB is
focused on the development of international
links for the accelerated development of the
Azerbaijan financial market.
One of the most important directions of this
development is through the BEST trading
system which allows for electronic trade for
the monetary needs of the market.
The introduction of “a currency swap”
operation has given banks the new tool
of management for working with current
liquidity. The BBVB aspires to increase, first
of all, the number of participants in trading,
the quantity of trading financial tools all the
while trying to develop technical
opportunities in trading and clearing
systems.
The BBVB gives special importance to
realize the complex strategy of corporate
management in conditions of the impressive
economic growth of Azerbaijan and further
the increase in demand for financial services.
One more important mission, which has
had a long preparation is the gradual
transformation of Baku as the financial center
of region. In my opinion, for this purpose
there are many preconditions.
HISTORY AND DEVELOPMENT
The Central Bank of Azerbaijan and the four
biggest state banks of Azerbaijan Republic
founded the Baku Interbank Currency
Exchange (Baki Banklarasi Valyuta Birjasi -
BBVB) on 26 July 1993 and this year marks
a decade from the moment of the beginning
of activity in the financial market. Becoming
from the beginning of the activity one of the
central financial institutions of the country,
the BBVB is today for the business public
of Azerbaijan an original symbol of
economic reforms. Using the advanced
information technologies and being based
on successful experience in the creation of
the universal trading platforms, the BBVB by
volumes of trades and number of financial
tools became the largest exchange institute
in the Caucasian region.
The purposes of the BBVB are as follows:
• to set up regular exchange trading to carry
out currency operations;
• to determine the market exchange rate of
the Azerbaijan currency (manat) to foreign
currencies;
• to create a mechanism for inter-state
settlements;
• to maintain management and information
services for currency operations;
• to settle transactions made at the BBVB
both in national and foreign currencies;
• to organize and carry out exchange
trading and auctions with interbank
credits; and
• to conduct exchange trading with futures.
MAJOR HISTORICAL DATES
October 18, 1991
Declaration of Independence of the
Azerbaijan Republic
August 15, 1992
Putting in circulation national
currency–Manat
June 21, 1993
Establishment of the BBVB
August 26, 1994
Beginning of regular exchange trading in the
currency market
March 31, 1995
First credit auction of the National Bank at
the BBVB
September 20, 1996
First T-bill auction
January 22, 1997
First exchange trading in the BBVB Stock
Department
August 30, 1997
Beginning of trading in the Organized
Interbank Currency Market (OICM)
September 25, 1997
First trading in the OICM by means of
universal trading e-network of the BBVB
December 17, 1997
Corresponding emerging market
membership status in FIBV
March 6, 1998
Signing in Baku Protocol on cooperation of
BBVB with Istanbul Stock Exchange
October 2, 1998
Full member of FEAS (Istanbul)
February 24, 1999
Membership in the Azerbaijan Commercial
Chamber (Baku)
December 14, 1999
Membership in the Azerbaijan Commercial
Banks Association (Baku)
April 20, 2000
Co-founder and membership in the
International Association of CIS Exchanges
(Moscow)
July 3, 2001
Signing in Moscow Arrangement on
strategic cooperation of BBVB with MICEX
(Moscow Interbank Currency Exchange)
March 27, 2002
Start of e-system of trades on Interbank
credits-the Organized Interbank Currency
Market
July 9, 2002
Start of Bourse E-System of Trades (BEST)
November 24, 2003
Signing in Almati agreement on mutual
cooperation of BBVB with KASE
(Kazakhstan Stock Exchange)
June 2004
Signing in Baku agreement on mutual
cooperation of BBVB with BSE (Bulgarian
Stock Exchange)
June 16, 2005
Start of the tool-currency swap in BEST
FUTURE OUTLOOK
In 2006, the BBVB plans the:
• modernization and reorganization of the
BBVB website;
• development of settlement and clearing
services, in particular software for
management of banks trading limits on
credit and the currency markets;
• improvement of the risk management
system in the realization of clearing
operations;
• development of internet-technologies
and e-commerce;
• further increasing of professional skills
of Exchange’s personnel;
• development of modern corporate
governance principles;
• introduction of the International system
in field of GAAP (General Accepted
Accounting Principles);
• introduction of a new financial
instruments;
• implementation of a new trading
system; and
• expansion of external contacts with
international and regional organizations.
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