Demand exceeds supply by over 7 times at deposit auction of Central Bank of Azerbaijan

The Central Bank of Azerbaijan (CBA) raised 100 million manats from banks at a deposit auction on Aug. 26, Trend reports referring to the CBA.

The supply greatly exceeded the demand and reached 721.3 million manats.

The interest rate on deposit transactions concluded within the auction was 6.26 percent. Term of placement of funds is 14 days.

The CBA started to hold deposit auctions in mid-June 2016. Deposit auction is an auction during which the deposits of commercial banks are placed in CBA. The main aim of such auction is sterilization of money supply.

(1 USD = 1.7 AZN on Aug. 26)