A lower dollarization level has been registered in Armenia. According to the protocol on the refinancing rate released by the Central Bank of Armenia (CBA) on Jan. 21, a 0.6% decline was registered late last December as compared with the previous month, the reason being a 5% increase in AMD deposits and a 4% in foreign currency deposits.

A 23.7% increase in AMD deposits, and 2.7% increase in foreign currency deposits caused a 4.6% decline in the dollarization level.

Despite the continuous decline in dollarization rates, foreign currency loans continued dominant in economic lending due to the funds attracted by commercial banks from abroad, as well as due to additional funds of the foreign currency correspondent account at the Central Bank. By the end of last December, a 24% increase in lending had been registered as compared with the corresponding period the previous year, with an increase of around 10% in AMD credits and a 37.2% increase in foreign currency credits.