BAKU, Azerbaijan, June 19. The share of deposits of the population left in US dollars is declining more slowly compared to the share of foreign currency loans in the total loan portfolio of banks in Azerbaijan, Deputy Head of Research, Chief CIS economist at Russian Gazprombank Gulnara Khaidarshina told Trend.
According to Khaidarshina, the dollarization of deposits of the Azerbaijani population is gradually decreasing due to tougher monetary conditions, but still remains at a high level.
Data from the Central Bank of Azerbaijan show that the share of deposits of the population in foreign currency decreased from 39.2 percent at the end of 2022 to 37.2 percent in April 2023, reaching a new low since the beginning of the COVID-19 pandemic.
"The current monetary conditions in Azerbaijan suggest a steady decline in the dollarization of deposits to below 40 percent. Meanwhile, the leading rating agencies consider a significant increase in the dollarization of deposits to be one of the factors exerting potential pressure on Azerbaijan's sovereign ratings," she said.