Demand for notes of Azerbaijani Central Bank tops supply multifold

Finance Materials 26 August 2020 18:48 (UTC +04:00)
Demand for notes of Azerbaijani Central Bank tops supply multifold

BAKU, Azerbaijan, Aug.26

By Eldar Janashvili – Trend:

The Baku Stock Exchange (BSE) held a regular auction on placement of short-term notes of Central Bank of Azerbaijan (CBA) with maturity of 28 days, attracting 200 million manat ($117.6 million) from Azerbaijani banks, Trend reports on August 26 referring to BSE.

The demand during the auction exceeded supply by almost 3.5 times; 14 investors filed 23 bids for a total nominal amount of 693.3 million manat ($407.8 million). Price offers amounted to 99.52 manat ($58.54) with a yield to maturity (YTM) of 6.26 percent.

The cut-off price for competitive bids was set at 99.52 manat ($58.54) with the YTM of 6.26 percent; the weighted average price stood at the same level. The volume of notes placed in the auction amounted to 200 million manat ($117.6 million).

The deadline for payment is September 23, 2020.

Short-term notes are a tool of monetary policy to regulate money supply in circulation. Only banks can obtain the notes.

Baku Stock Exchange cooperates with a number of leading international financial institutions. In light of integration of the Azerbaijani economy to the global economy, effective management of capital markets in accordance with modern requirements, application of international standards, as well as the establishment of international relations with leading stock exchanges and financial institutions is of great importance for the Baku Stock Exchange.

(1 USD = 1.7 manat on Aug.26)


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