YEREVAN. – An unprecedented situation was created in December of the year past, and in connection with the bank deposits of Armenia’s “residents.” 

The substantial “weakening” of the Armenian national currency, the dram (AMD), against the US dollar (USD) led to serious consequences, including with respect to the private deposits in the country’s commercial banks.    

The AMD deposits dropped by 10.7 percent in December 2014, as compared to September of the same year; the deposits in foreign currencies—especially in USD—, on the other hand, increased by 12.6 percent.   

But the picture was quite the opposite in the same period last year; the AMD deposits had increased, whereas the foreign currency ones were substantially lesser.

The AMD deposits’ share in the total amount of deposits in Armenia reduced by 5 percentage points in a matter of just three months. 

If the Central Bank of Armenia does not take effective measures to stabilize the exchange rate of the AMD, this process, as well as the other adverse effects of a strengthening USD in Armenia, will continue.