Overall deposits dollarization decreases in Kazakhstan

Finance Materials 27 November 2020 10:51 (UTC +04:00)
Overall deposits dollarization decreases in Kazakhstan

BAKU, Azerbaijan, Nov. 27

By Nargiz Sadikhova - Trend:

The value of deposits registered in Kazakhstan’s banking sector has increased by 15.3 percent or by 2.9 trillion tenge ($6.8 billion) over 10 months of 2020, having amounted to 21.9 trillion tenge ($51.8 billion), Trend reports citing Kazakhstan’s National Bank.

This includes tenge-denominated deposits the value of which increased by 20 percent from 2.1 trillion tenge ($5.1 billion) to 12.9 trillion tenge ($30.6 billion).

The exchange rate revaluation of foreign currency deposits makes a significant contribution to the growth of total deposits (more than a third of the growth at the end of October).

The deposits dollarization decreased from 43.1 percent at the beginning of the year to 40.8 percent in October 2020. The dollarization of deposits of the corporate sector decreased from 44.8 percent to 40.7 percent, whereas that of deposits in the retail sector from 41.3 percent to 40.9 percent.

The volume of deposits in Kazakhstan’s deposit organizations amounted to 21.3 trillion tenge ($49.9 billion) in Sept. 2020, which is 3.3 percent more compared to Aug. 2020.

Deposits of legal persons increased in value by 4.5 percent to 11.1 trillion tenge ($26.02 billion), whereas deposits of physical persons increased by 2.1 percent to 10.2 trillion tenge ($23.8 billion).

In turn, the value of deposits denominated in the national currency (tenge) increased by 2.2 percent in a month to 12.6 trillion tenge ($29.5 billion), whereas the value of deposits denominated in foreign currency increased by 5.1 percent to 8.7 trillion tenge ($20.4 billion).

The deposits dollarization level stood at 40.9 percent in Sept 2020 compared to 43.1 in Dec. 2019.


Follow the author on Twitter: @nargiz_sadikh