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Demand for Azerbaijani Central Bank’s notes greatly exceeds supply

15 February 2020 13:46 (UTC+04:00)
Demand for Azerbaijani Central Bank’s notes greatly exceeds supply

By Trend

Baku Stock Exchange (BSE) held an auction for placement of the short-term notes with circulation period of 168 days of the Central Bank of Azerbaijan (CBA) worth 50 million manat ($29.4 million) on Feb. 14,Trend reports referring to BSE.

The demand at the auction exceeded the supply by five times, as 12 investors filed 16 applications worth 193.8 million manat ($114 million).

The cut-off price for competitive bids was set at 98.2 manat ($57.7), or 3.7 percent, and the weighted average price was the same. The volume of notes placed at the auction amounted to 50 million manat ($29.4 million).

The deadline for payment is Aug. 3, 2020.

Short-term notes are a tool of monetary policy to regulate money supply in circulation. Only banks can obtain the notes.

($1 = 1.7 manat on Feb. 14)

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