The Baku Stock Exchange held a regular auction on placement of short-term notes of Azerbaijan’s Central Bank (CBA) with maturity of 84 days, attracting 50 million manat ($29.4 million) from Azerbaijani banks, Trend reports referring to BSE.
According to the BSE, demand during the auction exceeded supply by more than 4 times - eight investors filed 18 bids for a total nominal amount of 217.5 million manat ($127.9 million). The range of price offers ranged from 98.4381 manat ($57.9) with a yield to maturity (YTM) of 6.8 percent to 99.3245 manat ($58.42) with the YTM of 2.91 percent.
The cut-off price for competitive bids was set at 99.1815 manat ($58.34) with the YTM of 3.54 percent; the weighted average price was 99.2062 manat ($58.35) with the YTM of 3.85 percent. The volume of notes placed in the auction amounted to 50 million manat ($29.4 million).
The deadline for payment is June 1, 2020.
Short-term notes are a tool of monetary policy to regulate money supply in circulation. Only banks can obtain the notes.
Baku Stock Exchange cooperates with a number of leading international financial institutions. In light of integration of the Azerbaijani economy to the global economy, effective management of capital markets in accordance with modern requirements, application of international standards, as well as the establishment of international relations with leading stock exchanges and financial institutions is of great importance for the Baku Stock Exchange.
(1 USD= 1.7 AZN on Mar. 6)
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