BAKU, Azerbaijan, August 31
By Zeyni Jafarov - Trend:
Improvement in the balance of payments indicators has a positive effect on the stability of the foreign exchange market in Azerbaijan, head of the research and investment consulting department of Unicapital OJSC Seymur Ibadov told Trend on Aug. 30.
"The Azerbaijani economy continued to grow by the beginning of the third quarter of the year," Ibadov added.
"Taking into account the scale of the upcoming work to diversify the economy and if restrictive measures do not resume due to the COVID-19 pandemic, we expect the economic growth rate to continue in the range of 3-4 percent by the end of the year," head of the department said.
As for the current domestic capital market, the head of the department stressed that there was an excess of demand over supply following the results of the recent auction for the placement of long-term bonds of the Azerbaijani Ministry of Finance at the exchange.
"Thus, 15 investors submitted 24 applications, in which the yield range ranged from 8.2 percent to 12.31 percent," Ibadov added. "As a result, bonds worth 15 million manat ($8.8 million) were placed with an average yield of 8.41 percent."
Ibadov also said that an auction for the placement of the next tranche of medium-term bonds of the Azerbaijani Ministry of Finance is scheduled for August 31 at the Baku Stock Exchange and the envisaged volume on orders is 10 million manat ($5.9 million).
"If the demand for the state bonds during the trading exceeds the supply and the issuer is pleased with the price, the number of offered bonds may be increased by 50 percent," the head of the department said.
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