The National Bank of Azerbaijan (NBA) stated a drop in the level of dollar intervention to the country's economy in 2006, Trend reports.
As a result of 2006, the special weight of all deposits and savings in foreign currency dropped 19.5% in the general deposit portfolio and 18.8% in the money aggregate Рњ3. The processes are characterized by the consolidation of rate of the national currency, the manat, with respect to hard currency and increase of public confidence in the national currency as a result of the denomination.
As of January 1st 2007, the growth rate of deposits and savings in foreign currency was 24.8% as compared to last year. The growth rate of deposits of legal entities in the manat also exceeded the growth rate of deposits in foreign currency. Over the past 12 months, community deposits in manats rose 4.5 times and in foreign currency 29.7%.
As of 1 January 2007 special weight of deposits in foreign currency in the structure of deposits made up 69.5% against 88.7% as at January 1st 2006. Short-term deposits in foreign currency rose 39.1% as compared to the beginning of 2006 and long-term foreign deposits 22%. Short-term deposits in manats increased 1.7 times and long-term 6.9 times.
Manat deposits by physical entities exceeded the growth rate of manat deposits placed by legal entities. The special weight of deposits in the total amount of savings and deposits fell from 77.6% in the beginning of 2006 to 69.7% in the end of December 2006. Manat deposits by physical entities rose 4.5 times.
Long-term manat savings rose 4.8% as at the beginning of the year. NBA fixed increase in manat deposits in the banks by the non-residents. As of January 1st 2007, short-term manta savings by non-resident physical entities grew 3.2 times and long-term 7.4 times.