CBA raises 50M AZN from local banks

By Azernews

The demand has more than twice exceeded supply at the deposit auction held by the Central Bank of Azerbaijan (CBA), the CBA reported on December 19.

The CBA received 50 million manats as a deposit, while the demand was 101 million manats. The weighted average interest rate on deposit transactions at the auction was 14.3 percent.

Banks’ interest in deposit auctions has increased recently. Therefore, the country’s banks offer 70-130 million manats during the auctions, while the CBA is ready to receive 50 million manats.

Deposit auction is an auction during which the deposits of commercial banks are placed in the CBA. The main aim of such an auction is sterilization of money supply.

Thirty two banks, including two state-owned ones, operate in Azerbaijan.