Experts: Azerbaijan will not face rapid shrink in dollarization

Baku. 14 November. REPORT.AZ/ The level of dollarization in Azerbaijan's economy is not expected to decrease rapidly.

Analytical Group of Report News Agency informs, this is due to the fact that profitability of deposits and savings in manats in commercial banks significantly decreased since the beginning of 2017. At the same time, percentage of short-term dollar deposits has also significantly dropped.

For deposit holders who do not want to face devaluation in local currency, it is more profitable to deposit dollars. Because difference between profitability of dollar and manat savings is minimized.

Experts of Report News Agency believe that the reason for reduction of interest rates is that the banks are unable to provide loans: "The slowing down of the economy, toughening of credit conditions led banks to minimize lending. As a result, banks with normal management have been forced to lower their deposits and interest rates in order to avoid additional interest payments. This, in turn, led to gradual withdrawal of free funds of population from banks.