AZIR, the Azerbaijan Interbank Rate, is a benchmark for short-term unsecured interbank manat funding. It is not a household borrowing rate or a promised return on a deposit.
CBAR’s methodology governs calculation and disclosure. Eligible interbank transactions provide the underlying evidence, with specified procedures when data are insufficient. Read the rate together with notes, transaction counts and volumes. A published number does not necessarily establish that there was an active market that day.
AZIR is quoted as an annual rate. A hypothetical 6% does not mean paying 6% for one day. As a teaching example using a 365-day basis, one day of interest on AZN 100,000 at 6% is about AZN 16.44. This arithmetic is illustrative, not an implementation of the official AZIR calculation rules.
The daily rate may appear beside 30-, 90- and 180-day compounded rates and an index. These measure different things. A compounded rate incorporates a sequence of daily observations and compounding; the latest daily rate cannot stand in for it. The index is not another percentage interest rate.
Lower AZIR can indicate cheaper short-term liquidity. First check whether the movement persists and whether transactions provide sufficient evidence. A single thinly traded day is weaker evidence than a sustained series. The gap against the policy rate is also not a ready-made forecast of CBAR’s next decision.
Interbank funding costs are one influence on financing conditions. Maturity, risk, capital, margins and competition sit between that rate and an individual loan offer. In a FinFly story, AZIR can support an assessment of money-market conditions; saying that a reader’s own loan has become cheaper requires separate evidence and contract terms.
No. CBAR sets the policy rate; AZIR is calculated under a methodology for the interbank market.
No. It is an annualised rate, and compounded measures have their own calculation rules.
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