Demand for notes of Azerbaijan's Central Bank surpasses supply
BAKU. Azerbaijan. March 3
By Zeyni Jafarov - Trend:
The Baku Stock Exchange (BSE) held an auction on the placement of short-term notes of the Central Bank of Azerbaijan (CBA) on February 24, 2021, Trend reports citing the BSE.
The number of notes was 150 million manat ($88.2 million), and the circulation period - 28 days.
During the auction, 14 investors submitted 22 orders in the price range from 99.52 manat or $58.54 (6.24 percent) to 99.55 manat or $58.56 (5.76 percent).
According to the CBA's decision, the cut-off price of the bonds and the weighted average price amounted to 99.55 manat (5.76 percent), weighted average price - 99.55 manat (5.76 percent). The total amount of orders at nominal prices made up nearly 572.3 million manat ($336.6 million), the volume of the placed notes is 150 million manat ($58.8million), which demonstrates the excess of demand over supply by nearly four times.
The maturity date is March 31, 2021.
Starting from 2021, the auctions for the placement of notes of the Central Bank are mainly used to regulate liquidity. The main reason why note auctions are preferable to deposit auctions is the further development of the interbank money market.
Short-term notes are a monetary policy tool for regulating the money supply in circulation. Only banks can buy the notes.
(1 USD = 1.7 AZN on March 3)