The index of dollarization of the deposit liabilities of commercial banks amounted to 72.2 %  by October 19, 2005  the lowest  parameter  since January 1999.   According to the estimates of Mr. Roman Gotsiridze, President of the National Bank of Georgia, “ In mid  October of the current year the mentioned parameter decreased by 1.4 % compared to the end of September. This means that the deposit dollarization index  tends towards decrease systematically and such decrease is conditioned by growing public confidence in the national currency. Furthermore, the monthly nominal average  exchange rate of Lari appreciated by 0.4 %, which also caused the reduction of dollarization.   Within eight months of 2005 the deposits of commercial banks grew by GEL 225.5 million (25.2 %) and amounted to GEL1121.4 million. Within the same period deposits in  national currency grew by 76.7 %  (GEL 66.1 million). But this September  deposits in national currency grew by 1.7,    including term deposits, which grew by 2.7 compared to September of the last year. It is also noteworthy that loans in Lari increased by 146 % within nine months and ten days, while the loans in foreign currency  increased only by 38% ” – said the President of the National Bank of Georgia.   Dollarization is considered as forcing out the national currency from the fields of circulation and accumulation. In general, the level of dollarization is assessed by its  ratio.  It can be estimated as the ratio of foreign currency deposits to total deposits or to the volume of broad money (aggregate M3) in the banking system of the country. However, it must be noted that the share of deposits denominated in foreign currency  is  one of and not the only parameters of  dollarization of economy.  The point is that  such components of dollarization as foreign currency in circulation within the national economy and the deposits of residents  placed in foreign banks are difficult to assess quantitatively and therefore they are not usually  included in the estimation of the ratio to avoid the anticipated low accuracy.