Demand for notes of Azerbaijan's Central Bank exceeds supply

  22 April 2020    Read: 894
Demand for notes of Azerbaijan

The Baku Stock Exchange (BSE) held another auction on placement of short-term notes of Central Bank of Azerbaijan (CBA) with maturity of 28 days, attracting 200 million manat ($117.6 million) from Azerbaijani banks, according to BSE.

According to the BSE, demand during the auction exceeded supply by over 54 percent – ten investors sent 12 bids for a total nominal amount of 308.03 million manat ($181.1 million). The range of price offers ranged from 99.4462 manat ($58.49) with a yield to maturity (YTM) of 6.9 percent to 99.4773 manat ($58.51) with the YTM of 6.76 percent.

The cut-off price for competitive bids was set at 99.4773 manat ($58.51) with the YTM of 6.76 percent; the weighted average price was 99.4773 manat ($58.51). The volume of notes placed in the auction amounted to 200 million manat ($117.6 million).

The deadline for payment is May 20, 2020.

Short-term notes are a tool of monetary policy to regulate money supply in circulation. Only banks can obtain the notes.

Baku Stock Exchange cooperates with a number of leading international financial institutions. In light of the integration of the Azerbaijani economy to the global economy, effective management of capital markets in accordance with modern requirements, application of international standards, as well as the establishment of international relations with leading stock exchanges and financial institutions is of great importance for the Baku Stock Exchange.

(1 USD = 1.7 AZN on April 22)

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