The Baku Stock Exchange (BSE) held an auction on the placement of short-term notes of the Central Bank of Azerbaijan (CBA) on April 28, 2021, Trend reports citing the BSE.
The number of notes was 150 million manat ($88.2 million), and the circulation period - 28 days.
During the auction, 18 investors filed 31 bills in the price range from 99.52 manat or $58.54 (6.24 percent) to 99.55 manat or $58.55 (5.76 percent).
The maturity date is May 26, 2021.
In accordance with 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 915.3 million manat ($538.4 million), and the volume of the placed notes - 150 million manat ($88.2 million), which shows the excess of demand over supply by six times.
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 Apr.28)
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