BAKU, Azerbaijan, October 29. The dollarization rate of deposits held by resident individuals in Azerbaijan fell by 3.3 percentage points over the past 12 months to 25.7%, Governor of the Central Bank of Azerbaijan (CBA) Taleh Kazimov said today following a meeting on the parameters of the interest rate corridor, Trend's correspondent reports from the event.
According to him, for non-resident individuals, the rate declined by 5.7 percentage points to 54.6% over the same period.
He noted that supply and demand dynamics differ across segments of the foreign exchange market. In the non-cash foreign exchange market, supply significantly exceeds demand, while the opposite situation is observed in the cash market.
“On average, the non-cash foreign exchange market has seen a supply of $70 million per year, while demand has amounted to just $15 million,” Kazimov said.
The CBA chairman noted that no demand was recorded at five of the seven foreign exchange auctions held in October. At the other two auctions, total demand amounted to just $4.5 million.
He emphasized that the situation in the cash foreign exchange market was different.
“As for the cash market, demand exceeded supply by $759 million. This is a fairly substantial figure,” Kazimov said.
He noted that current foreign exchange market trends and the ongoing dedollarization of the banking sector were also reflected in the structure of deposits.
“The dollarization rate of deposits held by resident individuals fell by 3.3 percentage points over the past 12 months to 25.7%. I would particularly like to note that the dedollarization process is also continuing in deposits held by non-residents. Over the past 12 months, the dollarization rate of deposits held by non-resident individuals declined by 5.7 percentage points to 54.6%,” the CBA chairman said.
