Dollarization of deposits in Kyrgyzstan has decreases

Dollarization of deposits in Kyrgyzstan has decreased. This is stated in a report on monetary policy of the National Bank for the third quarter of 2016.

It is noted that at the beginning of the year the volume of deposits decreased, but in September the situation has changed.

The amount of the deposit base of commercial banks at the end of the third quarter amounted to 104.6 billion soms. Since the beginning of the year it rose by 1.7 percent.

The amount of foreign currency deposits fell by 18.1 percent - up to 55.3 billion in som equivalent. But the volume of deposits in national currency increased by 39.4 percent - up to 49.3 billion soms. Dollarization of deposits decreased by 4.1 percent.

The weighted average interest rate on new deposits in KGS amounted to 2.25 percent (0.14 percent compared to 2015), on foreign currency deposits - 0.55 percent (-0.49 percent).

The interest rate on fixed deposits in national currency amounted to 12.16 percent (-1.13 percent compared to 2015), and in foreign currency - 4.61 percent (-1.32 percent compared to 2015).