The Baku Stock Exchange (BSE) held a new auction for short-term notes of the Central Bank of Azerbaijan (CBA), Trend reports referring to a source in the BSE.

During the auction, the CBA had put up short-term notes worth 100 million manat ($58.8 million) with a circulation period of 28 days.

Reportedly, 19 investors filed 26 orders in the price range from 99.51 manat or $58.53 (6.24 percent) to 99.55 manat or $58.56 (5.76 percent).

According to the CBA’s decision, the cut-off price of the bonds and the weighted average price amounted to 99.55 manat (5.76 percent). The total amount of orders at nominal prices made up 812.37 million manat ($477.8 million), which shows the excess of demand over supply by more than 8 times.

The maturity date is July 14, 2021.

Starting from 2021, the auctions for the placement of notes of the Central Bank are mainly used to regulate liquidity. The main reason why note auctions are preferable to deposit auctions is the further development of the interbank money market.

Short-term notes are a monetary policy tool for regulating the money supply in circulation. Only banks can buy the notes.

(1 USD = 1.7 AZN on June 17)

Source: TREND News Agency