Turnover of government bonds at par rises in Azerbaijan

Finance Materials 12 January 2021 15:27 (UTC +04:00)
Turnover of government bonds at par rises in Azerbaijan

BAKU, Azerbaijan, Jan.12

By Zeyni Jafarov - Trend:

The turnover of government bonds at par totaled over 1.71 billion manat (over $1 billion) as of early December 2020, having increased by 47 percent or 548.7 million manat ($322.7 million) in annual terms, Trend reports citing the statistical report of the Central Bank of Azerbaijan (CBA).

Reportedly, the nominal turnover of the CBA notes by December 1, 2020, is estimated at 650 million manat, which dropped by 7.1 percent or 50 million manat ($29.4 million) on an annualized basis. An average circulation period is 12 days.

“From January through November 2020, the share of government bonds in the total government securities market reached 72.5 percent, which increased by 10 percentage points compared to the same period of 2019. The share of the CBA notes in the government securities market for the reporting period is estimated at 27.5 percent, which in turn is 10 percentage points less than in the same period of 2019,” said the report.

The total turnover in the government securities market by early December 2020 amounted to over 2.36 billion manat ($1.38 billion), an increase of 26.7 percent year on year.

During 2020, the Central Bank of Azerbaijan held 62 deposit auctions and 46 auctions for the placement of notes.

Earlier, the CBA noted that in order to prevent emerging threats to macroeconomic stability under the influence of the pandemic and to maintain equilibrium in the foreign exchange market, the concentration of the sterilization portfolio was reduced. Starting from the second quarter of 2020, at auctions organized by the CBA, there was an excess of demand oversupply, and the yield on these tools was approaching the lower limit of the interest rate band.

(1 USD = 1.7 AZN on Jan. 12)


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