ARMENIAN CB: THERE IS A US$700 MILLION CURRENCY LIQUIDITY SURPLUS IN COMMERCIAL BANKS IN ARMENIA

ArmInfo
2009-03-03 16:49:00

ArmInfo. There is a US$700 million currency liquidity surplus in
commercial banks in Armenia whereas national currency liquidity is
insignificant, Chairman of the Armenian Central Bank Arthur Javadyan
told media Tuesday.

He said that since the beginning of the global financial crisis, the
capital of local banks has increased by 40 billion drams. Their foreign
currency liquidity has grown by US$280 million and reached US$700
million. ‘This is the very amount in foreign exchange accumulated
at local banks’, he explained. A. Javadyan outlined that the banks
have raised about US$250 million long-term funds from international
financial organizations without state interference. ‘Banks are expected
to sell foreign currency and the economic entities that have bought
US dollars in the boom of the recent days will have to buy national
dram to continue activity, pay taxes in drams, get profits in drams
and repay credits also in drams. That is why demand for Armenian dram
will be high enough’, A. Javadyan said. He said that the monetary
policy of the Central Bank for the last months was aimed to ensure
financial stability, which has already brought results. ‘Our financial
system is in rather favorable state’, he said.

From: Emil Lazarian | Ararat NewsPress