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.
