CBA auctions off short-term notes

By Trend

The Baku Stock Exchange (BSE) held a new auction for short-term notes of the Central Bank of Azerbaijan (CBA), Trend reports citing the BSE.

According to the BSE, during the auction, the CBA put up short-term notes worth 100 million manat ($58.8 million) with a circulation period of 28 days.

Some 20 investors filed 24 orders in the price range up to 99.55 manat or $58.55 (5.76 percent).

According to the CBA's decision, the cut-off price of the bonds and the weighted average price amounted to 99.55 manat or $58.55 (5.76 percent). The total amount of orders at nominal prices made up slightly over 1 billion manat ($590 million) while the volume of the placed notes is 100 million manat ($58.8 million) which shows the excess of demand over supply by more than 10 times.

The maturity date is September 22, 2021.

Short-term notes are a monetary policy tool for regulating the money supply in circulation. Only banks can buy the notes.

(1 USD = 1.7 AZN on Aug.26)