BAKU, Azerbaijan, February 11. Azerbaijan will
increase the depth of its capital market through the introduction
of new financial instruments and digital solutions in line with the
Financial Sector Development Strategy of the Central Bank of
Azerbaijan (CBA) for the period covering 2024-2026, the CBA told
Trend.
The bank has positively assessed the recent developments and
dynamics observed in Azerbaijan’s securities market. This
advancement has produced noteworthy outcomes, especially regarding
the enhancement of market depth, the diversification of financial
instruments, and the growth of the investor base..
"When evaluating the current state of the market, it is
appropriate to refer to the actual trading indicators of the Baku
Stock Exchange (BSE).
Based on the indicators for 2025, the volume of the primary
market for corporate securities amounted to approximately 801
million manat ($471.1 million), while the secondary market volume
reached 283 million manat ($166.4 million). These figures
demonstrate a significant increase in transparency, liquidity, and
investor activity in the capital markets in recent years. Although
corporate bonds remain the main driving segment of the market, the
growing number of transactions in shares indicates that the market
is gradually deepening,” the CBA stated.
The Bank emphasized that measures aimed at introducing new
financial instruments and promoting institutional market
development are reflected in its Financial Sector Development
Strategy.
“In the strategy, strengthening capital markets has been
identified as one of the key priorities. Within this framework, the
formation of sustainable infrastructure, expansion of market access
opportunities, enhancement of investor confidence, enrichment of
the range of investment instruments, and improvement of regulatory
and supervisory mechanisms are envisaged. In line with the
strategy, projects related to the implementation of alternative
financial instruments such as securitization, derivative and repo
instruments, sukuk, venture capital, and crowdfunding are ongoing,”
the statement said.
It was also recalled that in October 2025, the European Bank for
Reconstruction and Development (EBRD) carried out the first-ever
issuance of a floating-rate bond in the local market and national
currency, which can be regarded as an important indicator that
Azerbaijan’s capital market infrastructure meets international
standards.
“This floating-rate instrument, based on the AZIR (Azerbaijan
Interbank Rate) benchmark, has created new opportunities for
managing interest rate risks and increasing instrument diversity in
the market,” the CBA noted.
The Central Bank has laid out its key priorities for the
immediate future. The statement emphasizes that enhancing the
involvement of both institutional and individual investors,
boosting financial literacy efforts, and advancing digital
solutions along with electronic trading opportunities will continue
to be key priorities.
“Automation of processes and reduction of transaction costs will
not only expand investors’ access to the market but also create
conditions for increasing the depth and sustainability of the
capital market. The measures implemented in this direction are
considered by the Central Bank as part of a long-term and
systematic development strategy,” the statement emphasized.
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