REDUCTION OF FOREIGN CURRENCY COMPULSORY RESERVE RATES WOULD MAKE IT POSSIBLE FOR LOCAL BANKS TO REDUCE INTERESTS ON FOREIGN CURRENCY DEPOSIT: HSBC BANK ARMENIA

ArmInfo
2009-09-15 19:24:00

ArmInfo. Reduction of foreign currency compulsory reserve rates would
make it possible for local banks to reduce foreign currency deposit
interests. As a result, the population would exchange their foreign
currency deposits into national currency deposits, HSBC Bank Armenia
CEO Tim Slater told media on Tuesday. He said that compulsory reserve
rate in Armenia is 12%.

T. Slater welcomed the Central Bank’s policy on reduction of
refinancing rate that resulted in deflation in the consumer market
of Armenia over the last months.

The National Statistical Service of Armenia reported 1.5% deflation
in June, 5.7% in July, 1.5% in August and 4.1% for Jan-Aug 2009.