More Cash, Less Trust? Why Demand for Cash Is Rising Again in Azerbaijan

Following the session of the World Urban Forum (WUF13) and Baku Energy Week, the Azerbaijani capital will host another major international event within the span of a single month. From June 16 to June 19, Baku will host the 51st Annual Meeting of...

Azerbaijan is accelerating its transition toward a cashless economy, turning digital payments into one of the key pillars of the country’s financial modernization. Amid the rapid expansion of mobile banking, QR payments, and e-commerce, the Central Bank of Azerbaijan (CBA) is effectively shaping a new consumer behavior model in which cash is gradually losing its dominant role.

Money supply growth in Azerbaijan continued to accelerate at double-digit rates in early 2026 amid rising government spending and high liquidity in the banking sector.

After several years during which many Azerbaijanis preferred to keep their money in cash, real estate, or consumer spending, bank deposits are once again returning to the center of household financial behavior. Rising inflation, the relative stability of the manat, and higher deposit yields are encouraging people to place more money into banks, while banks themselves are competing for customer funds almost as aggressively as they compete for borrowers.