Azernews.Az

Qabil Ashirov

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Azerbaijan’s interbank market is currently experiencing notably low levels of activity, Azernews reports, citing Taleh Kazimov, the Governor of the Central Bank of Azerbaijan (CBA), as he said at a press conference.

Kazimov attributed the subdued state of the market to banks fulfilling the demand and supply needs of their clients directly, bypassing interbank transactions.

“In 2023, the interbank market was more active. Today, the situation is different. Other financial markets, particularly stock exchanges, are showing greater activity. This shift was expected,” he noted.

The Governor also pointed to the structure of the currency market as a contributing factor. Around 30 to 35 percent of demand in that market is currently being met by the State Oil Fund of Azerbaijan, he said, reducing the need for interbank trading.

“Banks are primarily focused on satisfying the demands of their own customers,” he added.

The remarks suggest a broader transformation in the dynamics of Azerbaijan’s financial ecosystem, where direct services to clients and institutional actors like the Oil Fund are reducing traditional interbank reliance.