BAKU, Azerbaijan, April 14. Dollarization in Azerbaijan’s banking sector continued to decline in 2025, with the share of foreign-currency loans dropping to a historic low, Trend reports, citing the Central Bank of Azerbaijan.
The regulator reported that the dollarization of the banking sector’s loan portfolio fell by 1.9 percentage points over the year to 14.2%, marking the lowest level on record. Dollarization in the deposit portfolio also declined by 1.9 percentage points compared to the end of 2024, reaching 35.6%.
The Central Bank noted that the dedollarization trend remains especially pronounced among individual depositors. Dollarization of term deposits held by individuals decreased by 3.5 percentage points in 2025 to 31.4%, while demand deposits in foreign currency fell by 1.4 percentage points to 31.6%.
In contrast, foreign-currency holdings among legal entities showed mixed dynamics. Dollarization of term deposits by companies increased by 4.7 percentage points to 57.2%. Meanwhile, the share of demand deposits held in foreign currency by legal entities declined by 2.6 percentage points to 32.7%, the report said.