The Baku Stock Exchange (BSE) held an auction on the placement of short-term notes of the Central Bank of Azerbaijan (CBA) on January 27, 2021, Trend reports citing the BSE.
The number of notes was 200 million manat ($117.6 million), circulation period - 28 days.
During the auction, 16 investors submitted 27 orders in the price range from 99.52 manat or $58.54 (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 were also 99.55 manat (5.76 percent). The total amount of orders at nominal prices made up 760.47 million manat ($447.34 million), thus topping supply by almost 4 times.
The maturity date is February 24, 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 notes.
(1 USD = 1.7 AZN on Jan.27)
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