Demand for Azerbaijani Central Bank's notes greatly exceeds supply

By Trend

Baku Stock Exchange (BSE) held an auction for placement of short-term notes of the Central Bank of Azerbaijan (CBA) worth 100 million manats with a maturity of 28 days, Trend reports referring to BSE.

The demand at the auction exceeded the supply by more than five times, as 16 investors filed 26 applications worth 521.021 million manats.

The cut-off price for competitive bids was set at 99.5158 manats (6.26 percent), the weighted average price was also 99.5158 manats (6.26 percent). The volume of notes placed at the auction amounted to 100 million manats.

The deadline for payment is October 24, 2019.

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

(1 USD = 1.7 AZN on September 20)