WHERE DOES ARMENIAN MONEY GO?

Tert.am
17:30 30.03.10

RA Central Bank former president Bagrat Asatryan said today that the
country’s monetary base, manifested through the national currency,
began to diminish near the end of 2008. According to Asatryan, that
process continues till today.

There are two factors for why there’s a sharp decline in demand for
money, one of which is political, said Asatryan.

"A distrust of authorities is growing among the public and
consequently, toward the national currency," explained Asatryan.

According to the former Central Bank president, the second factor
is money flowing out of the country. As an example, Asatryan
named Georgia, where there are more favourable conditions for doing
business. In his observation, lately, a flow of Armenian business to
Georgia is noticeable.

Asatryan also said that during the first 3 months of 2010, the
financial base (expressed by dram) has decreased by 45 billion AMD. In
2008, the cash (on hand) base in the country was 344 billion dram,
while in 2009, that amount was 320 billion AMD. According to data
as of March 25, 2010, the base has diminished and now comprises 274
billion AMD.