Potential for deposit dollarization in Azerbaijan down

Finance Materials 4 March 2020 09:32 (UTC +04:00)
Potential for deposit dollarization in Azerbaijan down

BAKU, Azerbaijan, Mar. 4

By Eldar Janashvili – Trend:

The potential for dollarization of deposits in Azerbaijan has decreased 1.5 times over the past five years, Executive Director of the Center for Analysis of Economic Reforms and Communication Vusal Gasimli (CAERC) said, Trend reports.

Gasimli believes that in situations that threaten national economy, the most worrisome is usually the likelihood of increased dollarization. Amid a slowdown in the global economy due to the coronavirus (COVID-19) outbreak, these concerns are again on the agenda.

Nevertheless, the executive director noted that the level of dollarization in Azerbaijan is already high and is currently 55 percent, whereas before the devaluation at the beginning of 2015, this indicator was 37 percent.

The executive director added that reforms in banking regulation also have a positive effect on the competitiveness of the sector. Even in the currencies of the country's main trading partners, serious fluctuations, which are also favorable for the stability of the manat have not yet been registered.


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