On Deposit Auction of CBA Demand Two Times Exceeds Supply
On the deposit auction of the Central Bank of Azerbaijan on December 19 demand was 101 million manat, while the supply was 50 million manat.
The funds were raised at the weighted average rate of 14.30%, for a period of 14 days.
The Central Bank started holding such auctions in June 2016.
According to international practice, the main purpose of deposit auctions is the sterilization of money supply. At the time of deposit auctions the Central Bank receives commercial banks' deposits for placement. ----71D