Bank supply at Azerbaijan's CBA deposit auction exceeds demand two-fold

16 June 2020 17:00 (UTC+04:00)

By Trend

Central Bank of Azerbaijan (CBA) held a deposit auction, attracting 250 million manat ($147 million) from Azerbaijani banks, Trend reports citing CBA on June 16.

According to CBA, supply from banks at the auction exceeded demand by 2.3 times, reaching 567.7 million manat ($333.9 million).

The weighted average interest rate on deposit transactions concluded during the auction amounted to 6.76 percent.

The term for placing funds is 13 days.

Deadline for the payment is June 29, 2020.

The CBA began to hold deposit auctions in mid-June 2016.

A deposit auction is a bidding process during which the CBA attracts deposits from commercial banks. The main purpose of such auctions is to sterilize the money supply.

(1 USD = 1.7 AZN on June 16)

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