ARMENIA’S MONEY SUPPLY TO INCREASE BY 23-25% IN 2007

ARKA
Jul 11 2007

YEREVAN, July 11. /ARKA/. In 2007, Armenia’s money supply will increase
by 23-25% with the accelerated growth of the money supply.

The CBA protocol said that the money supply growth will make 37-40%
by the end of the year at the refinancing rate for July 2007.

At the same time, according to the Central Bank, in June 2008,
the annual growth of money supply will make 30-33% which will be
accompanies by the growth of cash in circulation and AMD deposits. In
this period the total money supply will make 20-22%, and the money
base will increase by 25-27%.

The annual growth of money supply in Armenia made 66% in June 2007
and the AMD deposits made 76.6%. Foreign investments in USD increased
by 19.2% whereas in AMD they reduced by 1.1%.

The protocol pointed out that money-and-credit indices during a year
coincided with the forecasts, and it testifies to maintenance of
dramalization (replacement of USD with AMD) economy process.

According to the Central Bank of Armenia, the volume of money supply
in Armenia made AMD 493.8bln at the beginning of 2007, the volume
of cash in non-banking system – AMD 216.5bln, call deposits – AMD
88.33bln. The volume of time deposits made AMD 54.4bln and the volume
of deposits in foreign currency – AMD 134.7bln.

The share of deposits in foreign currency within the money supply
made 27.27% (at the beginning of the year – 29.52%).

The total volume of money supply in Armenia has increased by AMD 7.6bln
or 1.56% since the beginning of the year. According to the RA monetary
and credit policy, the CBA forecasted growth of money supply by 21.8%
up to AMD 540.95bln. ($1 – AMD 339.02).