16:13 - 27.04.2023

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April 27, Fineko/abc.az. The Central Bank, increasing competition at the auctions of notes, expanded the base of investors on notes to create conditions for the formation of a yield curve for various periods (1-3-6-9 months), to support short-term activity in the money market, and also made changes to the conditions for the placement of notes.

The new resolution, along with banks, granted the right to own notes to commercial legal entities-residents working in the non-oil and non-state sectors. The purpose of setting limits is to prevent abrupt changes in the liquidity position of banks and various segments of the securities market.

ABC.AZ reports that commenting on this decision, economist Jafar Ibrahimli said that it will have positive impact on the securities market in several aspects.

In his opinion, with the entry of legal entities into this market, it will be possible to expand the investor base.

"Since the notes of the Central Bank are short-term and liquid securities, investors can sell them or conduct REPO operations with them at any time. In addition, these securities are considered an attractive financial instrument for legal entities, since they bring sufficient income to investors. Indirectly, the arrival of legal entities on the securities market will create conditions here for expanding the investor base and reviving the funds available in this sector, and in parallel with these notes – and for increasing investments in other securities with a multicator effect," the expert said.