BAKU, Azerbaijan, August 22. The Ministry of Finance of the Republic of Azerbaijan has organized another deposit auction aimed at more efficient management of state budget funds on August 22, Trend reports, citing the ministry.
The auction focused on placing the treasury account’s funds in local banks in the national currency.
The Ministry noted that the results of the auction saw a treasury balance of 370 million manat ($217.6 million) placed in a deposit for a 28-day term. The funds were allocated between two banks among the country’s five largest financial institutions based on capitalization and asset levels, at an average weighted interest rate of 7 percent.
A "deposit auction" can refer to two main things: either a public auction for an asset like a house or car where a buyer pays a non-refundable deposit to secure their purchase after winning the bid, or a monetary policy tool where a central bank holds an auction to accept deposits from commercial banks, thereby managing liquidity in the financial system.