BAKU, Azerbaijan, September 29. The volume of residents' deposits in deposit organizations of Kazakhstan grew as of late August 2022, Trend reports via the National Bank of Kazakhstan.
According to the bank, this figure amounted to 28.2 billion tenge ($59 million), up by 0.8 percent over the month (an increase of 12.9 percent year on year).
The increase in the volume of deposits was facilitated by the growth of funds in foreign currency by 4.1 percent, and tenge deposits slightly decreased - by one percent.
In August, the foreign currency deposits grew at the expense of legal entities’ deposits amid a significant growth in the foreign currency deposit portfolio of one bank.
Meanwhile, a small shift from foreign currency deposits to tenge deposits on deposits of the population took place due to the strengthening of the national currency and the continuing high differential of interest rates between deposits in national and foreign currencies.
So, the weighted average interest rate on term deposits of non-bank legal entities in the national currency in August 2022 increased to 12.4 percent (versus 7.3 percent in August 2021, and 12.3 percent – in July 2022), in foreign currency – to 2.1 percent, while on deposits of individuals in the national currency decreased to 11.7 percent (against 8.3 percent in August 2021, and 11.8 percent – in July 2022), and in foreign currency amounted to 0.8 percent.
As a result, the inflow of funds in foreign currency, accompanied by a decrease in tenge deposits, contributed to a growth in the dollarization level by 1.1 percentage points, to 36.5 percent. Nevertheless, excluding the growth of currency deposits of one bank, the dollarization of deposits in the banking system amounted to 35.8 percent.