Azerbaijan’s banking and financial indicators show continued stability, according to the latest data from the Central Bank of Azerbaijan (CBA).
Despite a slight decline in the nominal effective exchange rate of the manat, the country’s deposit and credit portfolios have grown significantly since the beginning of the year.
Stable Currency Dynamics
As of October 1, the nominal effective exchange rate of the Azerbaijani manat stood at 102.6 points, down by 0.1 points from the previous month and by 6.6 points since the beginning of the year. The real effective exchange rate was 115.2 points, marking a slight monthly increase but still below last year’s level.
Expanding Deposit Portfolio
The total deposit portfolio of Azerbaijani banks reached 41.7 billion manats, up 0.6% month-over-month, 3.6% since December 2024, and 8.8% year-on-year.
Non-financial organizations account for 53.3% of total deposits, or 22.2 billion manats.
Household deposits rose 11.5% over the year to 15.8 billion manats.
Financial institutions’ deposits grew 37%, reaching 3.69 billion manats.
While short-term deposits fell by 2% to 22.4 billion manats, long-term deposits jumped 25.5%, reaching 19.3 billion manats – a sign of improved confidence in the financial system.
Lending Growth
Total credit investments by banks and non-bank financial institutions reached 31 billion manats, up 1.9% month-over-month and 9.3% year-on-year.
Private banks hold 69.9% of total loans (21.7 billion manats), up 9.3% year-on-year.
State banks’ portfolios grew 10.5% to 7.59 billion manats, with their market share increasing to 24.5%.
Non-bank credit organizations (NBCOs) reported 1.76 billion manats in loans, up 3.9%, though their share declined to 5.6%.
Growing Money Supply
The total money supply (M3) in Azerbaijan reached 47.98 billion manats, up 0.5% month-over-month and 5.3% compared to last year.
M2 (manat-denominated supply) totaled 37.18 billion manats, up 4% year-on-year.
M1 (demand deposits) stood at 29.47 billion manats, increasing 2.7% over the year.
Cash in circulation (M0) rose 7.5% year-on-year to 17.01 billion manats.
Banking Assets and Foreign Position
Azerbaijan’s 22 operating banks now hold combined assets of 56.1 billion manats.
As of October 1, net foreign assets amounted to 26.75 billion manats, while net domestic assets totaled 21.23 billion manats, both showing moderate annual growth.
Overall, the data reflects a resilient financial system supported by stable monetary policy, strong liquidity, and growing public trust – even as the manat faces mild external pressures.
