Demand at auction of Azerbaijan's Central Bank exceeds supply

By Trend

The Central Bank of Azerbaijan (CBA) held a deposit auction, attracting 100 million manat ($58.8 million) from Azerbaijani banks, Trend reports referring to the CBA.

The demand from banks exceeded the supply by 6.5 times, amounting to 648.9 million manat ($381.7 million).

The weighted average interest rate on deposit transactions concluded during the auction amounted to 5.51 percent. The term for placing funds is 28 days.

Central Bank of Azerbaijan began to hold the deposit auctions since mid-June 2016.

A deposit auction is a bidding process during which the CBA attracts deposits from commercial banks. The main purpose of such auctions is the sterilization of money supply.

(1 USD = 1.7 AZN on Feb. 13)