Bank Of Baku

Role of national currency increases in Azerbaijan’s credit market

Role of national currency increases in Azerbaijan’s credit market
# 03 February 2011 08:16 (UTC +04:00)
The Central Bank of Azerbaijan says as of January 1, 2011, AZN 5.865 bln of total loan portfolio (AZN 9.193 bln) was in manat, others in foreign currencies. Credits in manat exceed credit in foreign currencies by 1.8 times.

Experts of Ekonomist magazine say that, share of credits in manat rose 5.9 percentage point compared to a year ago: “This reflects that, the use of dollar in Azerbaijan’s credit market has decreased”.

“If the liabilities are in dollar, increase of same currency can cause technical increase of liabilities. On the other hand, if the liabilities are in manat, active operations are conducted in dollar, the decrease of dollar is more useful. That’s why, officialization of credit in national currency”, aid teh experts of Ekonomist.
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