FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 22
BAKU INTERBANK CURRENCY EXCHANGE
LETTER FROM THE GENERAL MANAGER
During 2002 the BBVB developed its capital
markets by launching new markets and
technologies, such as the electronic trading system
(BEST) and an organized money market.
The year 2002 will be remembered as having
positive trends in the economic life of
Azerbaijan as well as in the operations of the
Baku Interbank Currency Exchange (BBVB).
For the country, it was the beginning of large-
scale economic reforms directed toward
supporting the development of national
businesses and entrepreneurship. The
construction of the Baku-Tbilisi-Ceyhan and
the Baku-Tbilisi-Erzurum oil and gas pipelines,
respectively, and other strategically important
projects for Azerbaijan will attract tremendous
investments to the country in the near future.
During this time the BBVB developed its
capital markets by launching new markets and
technologies, such as the electronic trading
system (BEST) and an organized money
market. In 2003, the BBVB will strive to meet
the requirements of the economy and capital
markets by implementing new technologies
and proposing new products and services as
well as improving the existing infrastructure. Other trading floors will also face similar
challenges.
The purposes of the BBVB are as follows: to maintain management and information
services for currency operations;
I would like to take this opportunity to wish
all FEAS members success in their
achievements in the capital markets industry.
Farhad F. Amirbayov
General Manager
HISTORY AND DEVELOPMENT
The joint-stock closed-type company, Baku
Interbank Currency Exchange (BBVB), was
founded on 21 June 1993 by the five largest
banks of the Azerbaijan Republic: the National
Bank, the joint-stock and commercial
International Bank, the joint-stock and
commercial Industrial and Investment Bank, the
joint-stock and commercial AgroIndustrial Bank
and the joint-stock and commercial Savings Bank.
The BBVB was registered on 26 July 1993 by
the Ministry of Justice of the Azerbaijan Republic.
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 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.
to provide convertibility of the national currency;
Main historical dates
18 October 1991 Declaration of Independence of the
Azerbaijan Republic 25 September 1997 First trading in the OICM by means of universal
trading e-network of the BBVB
21 June 1993 Establishment of the BBVB 26 August 1994 Beginning of regular exchange trading in the
currency market 17 December 1997 Corresponding emerging market membership
status in FIBV
31 March 1995 First credit auction of the National Bank at the BBVB
20 September 1996 First T-bill auction
22 January 1997 First exchange trading in the BBVB Stock
Department
30 August 1997 Beginning of trading in the Organized Interbank
Currency Market (OICM)
2 October 1998 Full member of FEAS (Istanbul)
24 February 1999 Membership in the Azerbaijan Commercial
Chamber (Baku)
1 December 1999 Membership in the Azerbaijan Commercial
Banks Association (Baku)
20 April 2000 Co-founder and membership in the International
Association of CIS Exchanges (Moscow)
FUTURE OUTLOOK
The 2003 outlook is:
to further develop electronic trading and
commerce;
to intensify activity in the organized interbank
money market in the BBVB trading system,
known as BEST;
to enlarge information, consulting and education
services; to develop risk-management practices to reduce
risks in exchange markets; and
to develop modern corporate governance
principles; to further develop and improve the information-
trading system of the BBVB to promote
international integration.
to improve settlement and clearing services for
market participants;