BAKU, Azerbaijan, October 13. In the first half of 2026, the dollarization rate of time deposits held by individuals in Azerbaijan decreased by 2.9 percentage points to 28.5% compared to the end of 2025, while the dollarization rate of demand deposits decreased by 3.3 percentage points to 28.3%.
This was stated in the “Financial Stability Report” published by the Central Bank of Azerbaijan (CBA).
According to the report, the dollarization rate of corporate time deposits also decreased by 1.8 percentage points to 55.4%. Meanwhile, the share of corporate demand deposits in the total deposit portfolio increased by 0.2 percentage points to 33%.
During the reporting period, the process of de-dollarization continued in consumer and mortgage loans, while the share of foreign-currency loans increased in the business loan portfolio. The main factor contributing to the rise in the dollarization rate of the loan portfolio was the increase in the share of foreign-currency loans within the business loan segment. Thus, in the first half of 2026, the dollarization rate of business loans rose by 2.6 percentage points to 27.6%. The report notes that this increase was primarily driven by secured business loans extended in foreign currency to individual borrowers.
The share of foreign currency in mortgage loans remained low. In accordance with the Central Bank’s regulations, the requirement to issue mortgage loans exclusively in the national currency resulted in this portfolio being composed almost entirely of manats. During the reporting period, the share of foreign-currency mortgage loans in the total mortgage portfolio was 0.6 percent.
The level of dollarization of consumer loans also decreased by 0.3 percentage points to 2%.
The report also notes changes in the weighted average duration of assets and liabilities in the banking sector. In the first half of 2026, the decline in the weighted-average duration of assets was primarily driven by the securities portfolio, while the decline in the weighted-average duration of liabilities was driven by a decrease in the weighted-average duration of deposits.
As a result, the difference between the weighted average duration of assets and liabilities decreased from 0.65 at the end of 2025 to 0.64.
