CENTRAL BANK OF ARMENIA IS TOUGHENING MONETARY-CREDIT POLICY BECAUSE OF SLOWDOWN IN ECONOMIC DRAMIZATION RATE

ArmInfo
2008-10-13 19:25:00

ArmInfo. The Central Bank of Armenia continues toughening
monetary-credit policy because of slowdown in economic dramization
rate due to growing inflation in Jan-June 2008.

In July-Sept 2008 almost all monetary-credit indices dropped as
against 2007. AMD supply grew by just 35.1% against 63.9% in 2007. AMD
deposits grew by 44%, circulating AMD cash by 28.7%, monetary base
by 31.6%. Currency deposits in USD equivalent grew by 25.9% while
deposits in AMD equivalent by 13.8%.

By the end of this year the annual growth in money and AMD supply
is expected to make up 21%-24%, monetary base – 9%-11%, AMD deposits
and AMD cash in circulation – 32%-34% and 12%-14%, respectively. The
growth in USD deposits will make up 23%-25% against 8.6% in 2007.