BAKU, Azerbaijan, Feb. 16
By Fidan Babayeva - Trend:
As a result of the last auction on placement of short-term bonds of the Ministry of Finance of Azerbaijan, there was an active demand at the stock exchange, which reached 105.3 million manat ($61.9 million) while placing only 25 million manat ($14.7 million), Head of the research and investment consulting department of Unicapital OJSC, Seymur Ibadov, told Trend.
According to Ibadov, at the last auction, 26 orders were submitted by 17 investors, where the range of order profitability ranged from 7.99-9 percent. As a result, 25.6 million manat ($15 million) was placed with an average yield of 8.36 percent.
"Soon, the Ministry of Finance plans to place next bonds, the volume on orders of which will be 45 million manat ($26.4 million). If the demand for government bonds during trading exceeds the supply, and the price satisfies the issuer, the volume of bonds offered by the issuer can be increased to 50 percent," Ibadov said.
Ibadov stressed that the continuation of the soft monetary policy of the Central Bank of Azerbaijan leads to the fact that the interest rate will remain low for some time, and its preservation will further reduce inflation, which has a direct positive effect on the local capital market.
"Of course, a four-percent inflation rate is exactly the discount limit that the CBA is aiming at in 2021. So, based on this, the probability of a sharp decline in the discount interest rate during 2021 seems minimal," the Unicapital OJSC representative added.
Earlier, Chairman of the Central Bank of Azerbaijan (CBA) noted the fluctuation of inflation in Azerbaijan during 2021 at the level of 4 percent, and said that this forecast is primarily based on the recovery in consumption demand and fiscal stimulated measures in Azerbaijan.
(1 USD = 1.7 AZN on Feb. 16)
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