Publications

The total FX position of the economy continued to improve in 3Q25 (with the latest data of Aug25) due to an improvement in public sector’s FX position, led by the CBRT. The composition of external debt continues to shift between the public sector and the real sector.

With the start of the easing from the CBRT since mid-June, banks’ interest margins improve; while credit growth trend stays closer to inflation. Cumulative RoE of deposit banks remained almost the same at 24% as of June, compared to 2024 end.

The Board of BanRep kept the policy rate unchanged at 9.5%. Notably, concerns persist regarding inflation, exchange rate volatility, and fiscal uncertainty.

The overall total FX position of the economy worsened in the third quarter of the year. Public sector’s short position declined whereas private sector’s long position deteriorated somewhat.

In the week ending by March 22nd, foreign currency adjusted weekly credit growth rose from 0.3% to 0.7% due to consumer credits in the sector. Total credits’ 13-week annualized trend hovers around 35%.

Foreign currency adjusted weekly credit growth fell from 1% to 0.3% due to both commercial and consumer credits in the sector. Total credits’ 13-week annualized trend rose slightly from 34.4% to 35% with the impact of strong weekly growth rates of the previous 4 weeks.

In the week ending by February 9, foreign currency adjusted weekly credit growth decelerated to 0.5% from 0.7% due to consumer credits in private banks. Total credits’ 13-week annualized trend rose from 25.4% to 27.2% due to carry-over impact of the previous two weeks.