Level of dollarization on individuals' bank deposits in Azerbaijan increase
BAKU, Azerbaijan, Sept. 25
By Zeyni Jafarov - Trend:
The level of dollarization on bank deposits of individuals in Azerbaijan amounted to 54.5 percent as of September 1, 2020, Trend reports citing the Central Bank of Azerbaijan (CBA).
According to CBA’s report, dollarization on bank deposits of individuals at the beginning of September 2020 increased by 2.3 percentage points compared to the beginning of the year.
As of September 1 of this year, the volume of deposits of individuals in commercial banks of Azerbaijan amounted to 7.8 billion manat ($4.5 billion). Of these funds, 3.5 billion manat ($2.05 billion) or 45.5 percent were placed in national currency, and 4.3 billion manat ($2.5 billion), or 54.5 percent, were presented in foreign currency.
The Board of Trustees of the Azerbaijan Deposit Insurance Fund (ADIF), on the recommendation of the Financial Stability Council of Azerbaijan, through an agreement with the CBA, decided to increase the maximum annual interest rate on protected deposits in national currency from 10 to 12 percent from June 1, 2020. In member banks of the ADIF, the upper limit of the annual interest rate on protected deposits in foreign currency is 2.5 percent.
(1 USD = 1.7 manat on Sept. 25)