Demand for Azerbaijani Central Bank's notes exceeds supply

By Trend

The Baku Stock Exchange (BSE) held another auction on placement of short-term notes of Azerbaijan’s Central Bank (CBA) with maturity of 28 days, attracting 200 million manat ($117 million) from Azerbaijani banks, Trend reports referring to BSE.

According to the BSE, demand during the auction exceeded supply by over 29 percent - eight investors sent 12 bids for a total nominal amount of 253.87 million manat ($149 million). The range of price offers ranged from 99.44 manat ($58.5) with a yield to maturity (YTM) of 7.24 percent to 99.45 manat ($58.5) with the YTM of 6.76 percent.

The cut-off price for competitive bids was set at 99.44 manat ($58.5) with the YTM of 7.24 percent; the weighted average price was 99.4624 manat ($58.50). The volume of notes placed in the auction amounted to 200 million manat ($117 million).

The deadline for payment is May 13, 2020.

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

(1 USD = 1.7 AZN on April 20)