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Azerbaijan's Central Bank to auction deposits in liquidity-required cases

Finance Materials 12 January 2021 17:41 (UTC +04:00)
Azerbaijan's Central Bank to auction deposits in liquidity-required cases

BAKU, Azerbaijan. Jan.12

By Zeyni Jafarov - Trend:

A number of innovations were introduced in the operating structure of the Central Bank of Azerbaijan (CBA) and liquidity management in 2021 in order to increase the efficiency of the regulatory operations of the CBA, flexible regulation of the volume of these operations and provide additional support to the development of the money market, Trend reports referring to a source in the country's financial market.

According to the source, from this year, auctions for the placement of the CBA’s notes will be mainly used to regulate the liquidity.

The main reason of preferring auctions for the notes is the further development of the interbank money market. So, the presence of notes in the portfolio of banks increases the possibilities of carrying out secured transactions in the money market.

The deposit auctions will be held when liquidity requires it. Information on the timing of the deposit auction will be posted in advance on the website of the Central Bank of Azerbaijan.

The CBA has been holding deposit auctions since June 2016.

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