Demand at deposit auction of Azerbaijan's Central Bank exceeds supply

  25 December 2019    Read: 937
  Demand at deposit auction of Azerbaijan

The Baku Stock Exchange held an auction on the placement of short-term notes of the Central Bank of Azerbaijan (CBA), reports referring to the Baku Stock Exchange.

The Baku Stock Exchange raised 170 million manat ($100.2 million) from the Azerbaijani banks.

The supply exceeded the demand by 5.5 times. Fifteen investors made 23 applications worth over 942.8 million manat ($554.6 million).

The cut-off price for competitive bids was set at 99.5543 manat ($58.5) which is 5.76 percent, the weighted average price was 99.5543 manat ($58.5) which is 5.76 percent. The volume of notes placed at the auction amounted to 170 million manat ($100.2 million).

The deadline for payment is Jan. 23, 2020.

The CBA started to hold deposit auctions in mid-June 2016. Deposit auction is an auction during which the deposits of commercial banks are placed at CBA. The main aim of such auction is sterilization of money supply.

(1 USD = 1.7 AZN on Dec. 25)

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