Azerbaijani Finance Ministry places nearly $300 mln in deposits across 5 banks following auction

BAKU. May 21 (Interfax) - The Azerbaijani Finance Ministry conducted its third deposit auction on Wednesday, placing 500 million manat ($294.1 million at the current exchange rate) in five of the country's largest banks.

"As a result of the auction, 500 million manat from treasury account balances were placed in five major banks [International Bank of Azerbaijan, PASHA Bank, Kapital Bank, Xalq Bank and Bank Respublika] for 30 days at a weighted average rate of 6.8%," the Finance Ministry said.

The auction utilized available funds from the unified treasury account, aiming to improve state budget fund management efficiency.

As reported, the first deposit auction was held on April 11, 2025, placing 1 billion manat in four systemically important banks for three months at a 7.21% weighted average rate. The second auction on April 24 placed 500 million manat for 32 days at 7.04%.

The deposit auctions serve as an additional revenue source for the state budget while enhancing liquidity in the banking sector, the Finance Ministry said.

The official exchange rate on May 21 is 1.7 manat/$1.