The international rating agency Fitch Ratings predicts that the dollarization of deposits in the Azerbaijani banking sector will remain at a high level in the coming years, APA-Economics reports, citing the agency.
The rating agency states that at the end of the third quarter of 2025, 44% of deposits were in foreign currency: "Unless additional macro-prudential measures are taken, the process of denominated deposits in manats will continue at a very slow pace."
According to the report, the share of loans granted by banks in foreign currency will continue to decline and will fall to approximately 12% of the total loan portfolio by the end of 2026 (end of 2024: 16%). Fitch explains this by the stable exchange rate of the manat against the US dollar and the serious restrictions on lending in foreign currency.
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