Azerbaijan's Central Bank holds deposit auction

By Trend

Central Bank of Azerbaijan (CBA) held a deposit auction, attracting 100 million manat ($58.8 million) from Azerbaijani banks, Trend reports referring to CBA on Mar. 4.

According to the bank, demand from banks at the auction exceeded supply more than 6 times, amounting to 620.3 million manat ($364.8 million).

The weighted average interest rate on deposit transactions concluded during the auction amounted to 5.51 percent.

The term for placing funds is 28 days.

Deadline for the payment is Apr. 1, 2020.

The CBA began to hold deposit auctions in mid-June 2016.

A deposit auction is a bidding process during which the CBA attracts deposits from commercial banks. The main purpose of such auctions is to sterilize the money supply.

(1 USD = 1.7 AZN on Mar. 4)