In August of 2005, compared to July,  dolarization indicator of the deposits of commercial banks  reduced by 1.5 % points and equaled  73.7 %  -  the lowest indicator since January, 1999.   According to the Vice-President of the National Bank of Georgia David Amaglobeli “Reduction of dolarization indicator of deposits  is conditioned by enhancing confidence in  national currency  and appreciating the nominal exchange  rate of Lari by 0.8% in August of the current year, compared to July.   Within eight months of the current year the deposit liabilities of banks grew by GEL 186.5 million (20.8 %) and amounted to GEL 1082.4 million. Within the same period the deposits in national currency increased by GEL 54.9 million mainly due to the increase in current account balances.  Besides, the time deposits in national currency increased by GEL 15.0 million and amounted to GEL 42.4 million.   In August, 2005 deposit liabilities of the banking system grew by GEL 65.6 million, of which the liabilities denominated in  national currency grew by GEL 32.8 million and the deposits in foreign currency  -  by USD 23.1 million (GEL 32.8 million). According to David Amaglobeli deposits in national and foreign  currencies  have increased  equally this month. The increase  of deposits  mainly  fell on the deposits of legal entities.     In the reporting period, compared to August of 2004, deposits in national currency increased by 1.7, including time deposits in Lari, which increased by 2.1. In the structure of  deposits in national currency  80.5 %  falls on legal entities.   Since the beginning of the current year deposits denominated in foreign currency have increased by USD 80.7 million (22.1 %)  and  amounted to USD 445.5 million. Unlike the deposits in Lari 70 % of this kind of deposits belong to individuals. It should be noted that  the growth of deposits in foreign currency is totally conditioned by  the growth of individuals’ deposits. Besides, since the beginning of the year the largest growth fell on   time deposits in foreign currency  (USD 72.4 million).   In August of the current year the growth rate of deposits (24%) in Lari exceeded the growth  rate  of  foreign currency deposits  by 4 %.