Demand at deposit auction of Azerbaijan's Central Bank exceeds supply

By Trend

The Baku Stock Exchange held an auction on the placement of short-term notes of the Central Bank of Azerbaijan (CBA), Trend reports referring to the Baku Stock Exchange.

The Baku Stock Exchange raised 170 million manat ($100.2 million) from the Azerbaijani banks.

The supply exceeded the demand by 5.8 times. Seventeen investors made 29 applications worth over 991.8 million manat ($584.5 million).

The cut-off price for competitive bids was set at over 99.5 manat ($58.5) which is 6 percent, the weighted average price was over 99.5 manat ($58.5) which is 6 percent. The volume of notes placed at the auction amounted to 170 million manat ($100.2 million).

The deadline for payment is Jan. 9, 2020.

The CBA started to hold deposit auctions in mid-June 2016. Deposit auction is an auction during which the deposits of commercial banks are placed at CBA. The main aim of such auction is sterilization of money supply.

(1 USD = 1.7 AZN on Dec. 11)