26.Nov .2021 11:00

Dollarization Of Priviate Inidivdulas’ Bank Deposits Still Amounts To 75%

Dollarization Of Priviate Inidivdulas’ Bank Deposits Still Amounts To 75%
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The National Bank of Georgia (NBG) reports, that as of October 2021, dollarization of private individuals’ deposits amounts to 75%. The rate is unchanged for the last year, which indicates that Georgian citizens save the money in USD and EUR instead of the national currency.

However, dollarization rate has been declining at a low rate over the past few years. Namely, in 2018, dollarization averaged 77.9%, in 2019 it decreased to 76%, and in 2021 it became 75%.

The average interest rate on GEL term-deposits amounts to 11.2%, while the average yields on foreign currency deposit is 2.4%. The interest rate on GEL deposits increased by 0.9 pp on average, while the interest rate on foreign currency deposits decreased by 1.1 pp.

As for deposits of legal entities, the dollarization ratio stands at 44.2%.

Deposits of GEL 37.2 billion are placed in the banking system, of which 19.89 billion are deposits of individuals and 16.41 billion are deposits of legal entities.