Supply at Azerbaijani Central Bank's deposit auction tops demand five-fold
BAKU, Azerbaijan, Aug.17
By Eldar Janashvili - Trend:
The Central Bank of Azerbaijan (CBA) held a deposit auction, attracting 150 million manat ($88.2 million) from Azerbaijani banks, Trend reports on August 17 citing the CBA.
According to the CBA, supply from banks at the auction exceeded demand by almost five times, reaching over 496.7 million manat ($292.1 million).
The weighted average interest rate on deposit transactions concluded during the auction amounted to 6.26 percent.
The term for placing funds is 14 days.
Deadline for the payment is August 31, 2020.
The CBA began to hold deposit auctions in 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 to sterilize the money supply.
(1 USD = 1.7 manat on Aug.17)