Demand at CBA deposit auction exceeds supply by over 7 times

By Trend

The Central Bank of Azerbaijan (CBA) held a deposit auction on June 3, where it attracted 100 million manats from Azerbaijani banks, Trend reports referring to the CBA.

The bank noted that the demand at the auction amounted to 744.8 million manats.

The weighted average interest rate on deposit transactions concluded within the auction was 6.76 percent. The maturity period is 14 days.

The CBA has started to hold deposit auctions since mid-June 2016.

Deposit auction is a tender in which the Central Bank attracts deposits from commercial banks. The main purpose of such auctions is the sterilization of money supply.

(1 USD = 1.7 AZN on June 3)