The Central Bank of Azerbaijan (CBA) raised 9.98 billion manats from banks at deposit auctions in 2017, the CBA said on January 4.
The demand from banks amounted to 25.56 billion manats, which exceeded the supply nearly 2.6-fold.
The interest rate on deposit transactions concluded within the framework of the auctions was 10.01-14.87% during the past year. The average annual interest rate on deposit transactions was 12.22%.
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 the CBA. The main aim of such auction is sterilization of money supply.
Thirty banks, including two state-owned banks, operate in Azerbaijan. (Trend/Business World Magazine)