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Central Bank of Azerbaijan diversifies sterilization tools

21 September 2019 [11:07] - TODAY.AZ

Trend:

The Central Bank of Azerbaijan (CBA) intends a phased placement of 84-day, 168-day and 252-day notes in order to support the development of the securities market as a whole, as well as intensify the interbank money market in terms of the short-term yield curve cycle with periodic diversification of sterilization instruments, Trend reports referring to the CBA’s press service.

New urgent notes will be placed without the implementation of the “interest rate corridor” principle.

In other words, orders that will be presented at the auction in connection with new urgent notes will not be limited by the CBA’s discount rate range with a low threshold for the interest corridor, and will reflect the expectations of auction participants regarding market interest.

Among the innovations in bidding for notes are changes in the settlement mode. As such, for more convenient settlements on transactions concluded with notes, settlements on concluded transactions are carried out in T+1 mode starting from the 28-day note auction on September 18, 2019.

URL: http://www.today.az/news/business/186524.html

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