Central Bank of Azerbaijan attracts funds

By Trend

Central Bank of Azerbaijan (CBA) held a deposit auction, attracting 250 million manat ($147 million) from Azerbaijani banks, Trend reports referring to CBA on April 6.

According to the bank, demand from banks at the auction exceeded supply by 70.75 percent, reaching 426.9 million manat ($251.1 million).

The weighted average interest rate on deposit transactions concluded during the auction amounted to 6.85 percent.

The term for placing funds is 14 days.

Deadline for the payment is Apr. 27, 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 Apr. 13)