Demand for Azerbaijani Central Bank's notes exceeds supply

By Trend

Baku Stock Exchange (BSE) held an auction for placement of short-term government bonds of the Central Bank of Azerbaijan (CBA) for 200 million manats with a maturity of 28 days, Trend reports referring to BSE.

The demand at the auction exceeded the supply by more than three times, as 14 investors filed 21 applications for 656.724 million manats.

The cut-off price for competitive bids was set at 99.5158 manats (6.51 percent), the weighted average price was also 99.5158 manats (6.26 percent). The volume of notes placed at the auction amounted to 200 million manats.

The deadline for payment on notes is Sept. 4, 2019.

The short-term notes are an instrument of monetary and credit policy for regulating the money stock in circulation. Only banks can acquire notes.

(1 USD = 1.7 AZN on Aug. 7)