BAKU, Azerbaijan, Feb. 26
By Sadraddin Aghjayev - Trend:
The Central Bank of Azerbaijan (CBA) plans to place short-term notes totaling 150 million manat ($88.2 million) at the Baku Stock Exchange (BSE) on March 3, 2021, Trend reports with reference to the BSE.
Bonds with a face value of 100 manat ($58.8) and a circulation period of 28 days will be offered at the auction.
If the demand accumulated at the auction exceeds the supply, the rate can be increased by the issuer by a maximum of 20 percent of the amount originally put up for the auction.
The price range for the submitted orders will range from 99.52 manat ($58.54) to 99.55 manat ($58.55).
The maturity date is set for March 31, 2021.
Only local banks operating on the basis of a license can act as buyers of short-term notes of the Central Bank of Azerbaijan. Short-term notes are a monetary policy tool for regulating the money supply in circulation. Only banks can buy notes.
Starting in 2021, to regulate liquidity, auctions for the placement of the CBA notes are mainly used. The main reason why auctions on notes are preferred over deposit auctions is the further development of the interbank money market.
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