CBA holds auction, attracts bank funds

By Trend

Central Bank of Azerbaijan (CBA) held a deposit auction, attracting 200 million manat ($117 million) from Azerbaijani banks, Trend reports citing the CBA.

According to the bank, supply from banks at the auction exceeded demand by 61.25 percent, reaching 322.5 million manat ($189 million).

The weighted average interest rate on deposit transactions concluded during the auction amounted to 6.76 percent.

The term for placing funds is 14 days. Deadline for the payment is June 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.