BAKU INTERBANK CURRENCY EXCHANGE
Farhad F. Amirbayov
General Manager
This past year became the year of development
of our Bourse E-System of Trades (BEST).
BEST is regarded as one of the most useful
innovations in the financial market of
Azerbaijan. This electronic system of trades
allows our banks to solve a number of
problems from conducting transactions within
one day, to concluding deals at various rates
using different tools. BEST also lowers system
risk. Banks have begun to adjust their short-
term liquidity in the organized interbank credit
market; a framework for BEST.
The obvious advantages of BEST, as a high
speed order processing system, are the use of
a modern communication facility and electronic
data processing, while decreasing costs
connected with organized trading. We are
ready to introduce internet trading and to create
systems for electronic document circulation.
We feel certain that our acquisition of
successful operational skills in electronic
trading has allowed us to quickly proceed from
discussions to practical steps on the
construction of a financial market necessary for
the development of the national economy and
the well being of the population.
We are ready to
introduce internet
trading and to
create systems for
electronic document
circulation. In the near future, the spectrum offered in our
electronic system of financial tools will be
expanded. In my opinion, the main benefits of
electronic trades are transparency and
efficiency. We, therefore, believe that electronic
trading systems are the future. HISTORY AND DEVELOPMENT MAIN HISTORICAL DATES FUTURE OUTLOOK
The Central Bank of Azerbaijan and the four
largest state banks of the Azerbaijan Republic
founded the Baku Interbank Currency Exchange
(Baki Banklarasi Valyuta Birjasi - BBVB) on 26
July 1993. This year marks a decade since the
beginning of activity in the financial market. Ever
since the onset of the activities of this central
financial institution, the BBVB has become an
innovative symbol of economic reforms for the
business public of Azerbaijan. Using advanced
information technology and experiencing
success in the creation of universal trading
platforms, the BBVB, by volume of trade and
number of financial tools, has become the
biggest exchange in the Caucasian region. 18 October 1991 Declaration of Independence
of the Azerbaijan Republic The main directions of the BBVB activity in
2004 are to:
15 August 1992 Start of circulation of national
currency - manat • develop clearing and settlement services,
particularly software for the trading limit
management of banks in credit and currency
markets;
21 June 1993 Establishment of the BBVB
26 August 1994 Start of regular exchange
trading in the currency market
31 March 1995 First credit auction of the
National Bank at the BBVB
20 September 1996 First T-bill auction
The purposes of the BBVB are to: 22 January 1997 First exchange trading in the
BBVB Stock Department
• set up regular exchange trading to carry out
currency operations; 30 August 1997 Start of trading in the
Organized Interbank Currency Market (OICM)
• determine the market exchange rate of the
Azerbaijan currency (manat) to foreign
currencies;
• create a mechanism for inter-state
settlements;
• maintain management and information
services for currency operations;
• settle transactions made at the BBVB both
in national and foreign currencies;
• organize and carry out exchange trading
and auctions with interbank credits; and
• conduct exchange trading with futures.
25 September 1997 First trading in the OICM
by means of a universal trading e-network
17 December 1997 Corresponding emerging
market membership status in WFE
6 March 1998 Signing of the protocol for
cooperation of the BBVB with the Istanbul Stock
Exchange
2 October 1998 Full membership in FEAS
(Istanbul)
24 February 1999 Membership in the
Azerbaijan Commercial Chamber (Baku)
14 December 1999 Membership in the
Azerbaijan Commercial Banks Association
(Baku)
20 April 2000 Co-founder of the International
Association of CIS Exchanges (Moscow)
3 July 2001 Signing of Moscow agreement on
strategic cooperation with MICEX (Moscow
Interbank Currency Exchange)
27 March 2002 Start of the e-system of trades
on interbank credits – the OICM
9 July 2002 Start of Bourse E-System of Trades
(BEST)
24 November 2003 Signing of Almaty
agreement on mutual cooperation with KASE
(Kazakhstan Stock Exchange)
FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004
PAGE 28
• improve the risk management system for
clearing operations, including IT-audit;
• improve the functional conformity of all
departments, in order to achieve the strategic
goals of the Exchange;
• accelerate the introduction of new financial
tools and market segments in the Bourse
E-System of Trade (BEST);
• develop internet technologies and e-
commerce;
• further increase the professional skills of
Exchange personnel; and
• develop modern corporate governance
principles.