FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2011
BAKU INTERBANK CURRENCY EXCHANGE
Farkhad Amirbekov
General Manager
The dynamic growth of the Azerbaijan economy
increases in the credit ratings and the subsequent
arrival of large investors promote the further
development of the financial infrastructure of the
country. Today the BBVB takes a central role in
the infrastructure of the Azerbaijan capital market,
integrating on a uniform technological platform
trading and settlement systems. I am sure that
the dynamic growth of the Azerbaijan economy
and development of the exchange infrastructure
will promote further growth and the appeal of the
financial market of the country.
In the near future BBVB plans to introduce new
technological ideas, new financial tools and
services for clients. We will continue to work on
perfection of a technological infrastructure for the
HISTORY AND DEVELOPMENT
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 it marks 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, 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, 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;
• to conduct exchange trading with futures.
PAGE 34
I am sure that dynamical growth of the
Azerbaijan economy and development of an
exchange infrastructure will promote the
further growth of appeal of the financial
market of the country.
exchange and a control system of risks. The main
objective of exchange innovations is not only the
service of currency transactions of banks but for
us it is very important, that the exchange market
began to play more significant role in the banking
system. Therefore I especially would like to
allocate such projects, as the start of the market
for currency swaps. The main objective of
development of the exchange currency market
consists in the increase of its appeal in the
expansion of a number of the interconnected
tools. We make plans, proceeding from necessity
to correspond to the world standards both on
technologies and on a spectrum of offered tools
and services. For this purpose all of our
perspective projects are subjected to these same
standards.
Main historical dates
18 October 1991, Declaration of Independence
of the Azerbaijan Republic
15 August 1992, Putting in circulation national
currency - Manat
21 June 1993, Establishment of the BBVB
26 August 1994, Beginning 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
22 January 1997, First exchange trading in the
BBVB Stock Department
5 May 1997, The beginning of preparation of
the first rating estimations of banks
1 July 1997, Creation of the first exchange site
30 August 1997, Beginning of trading in the
Organized Interbank Currency Market (OICM)
25 September 1997, First trading in the OICM
by means of universal trading e-network of the
BBVB
17 December 1997, Corresponding emerging
market membership status in WFE
6 March 1998, Signing in Baku Protocol on
cooperation of BBVB with Istanbul Stock
Exchange
2 October 1998, Full member of 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 and membership in
the International Association of CIS Exchanges
(Moscow)
3 July 2001, Signing in Moscow Arrangement
on strategic cooperation of BBVB with MICEX
(Moscow Interbank Currency Exchange)
27 March 2002, Start of e – system of trades on
Interbank credits – the Organized Interbank
Credit Market
8 July 2002, Creation of the commission on
trading limits
It is obvious, that creation of a uniform exchange
centre in the region will provide not only close
integration of Azerbaijan into the world market,
but also will give the stability to the country’s
financial system. And here the importance of the
exchange market as infrastructural element of a
financial system consists in performance of a
variety of unique functions, of which realization by
other institutes either is impossible, or is
inconvenient. I sincerely hope that realization of
these plans will allow us to strengthen our
positions, rendering best practices level service to
our trade participants. This will lead the BBVB to
become a basis for the creation of a world class
regional financial centre.
9 July 2002, Start of Bourse E – System of
Trades (BEST)
24 November 2003, Signing in Almati
agreement on mutual cooperation of BBVB with
KASE (Kazakhstan Stock Exchange)
16 June 2004, Signing in Baku agreement on
mutual cooperation of BBVB with BSE
(Bulgarian Stock Exchange)
31 August 2004, Registration of index AzeriREI
developed by experts BBVB
16 June 2005, Start of the tool - currency swap
in Bourse E – system of trade (BEST)
1 January 2006, Technical transition of BEST
system for using denominated manat
14 August 2007, Signing in Baku agreement on
mutual cooperation of BBVB with TICEX (Tbilisi
Interbank Currency Exchange)
1 May 2008, Start of the settlement - trading
system of BEST
28 February 2008, Signing in Moldova
agreement on mutual cooperation of BBVB with
MOLDSE (Moldova Stock Exchange)
21 October 2009, Introduction of the new tool in
the Organized Interbank Money Market
FUTURE OUTLOOK
• Development of settlement and clearing
services, in particularly software for
management of banks trading limits on money
and the currency markets;
• Improvement of the risk management system
in realization of clearing operations;
• Further increasing professional skills of
Exchange’s personnel;
• Development of modern corporate
governance principles;
• Development of Internet–technologies and
e–commerce;
• Intensification of activity in organized
interbank money market.