Armenia’s banking system heads for dedollarization

September 18, 2010 - 16:02 AMT

PanARMENIAN.Net - Independent expert, PhD of Economic Sciences Samvel Avagyan said that dedollarization trends are observed in Armenia’s banking system.

This is proved by the structure of loans granted by banks, in which AMD loans prevail, Avagyan told a press conference in Yerevan.

Moreover, according to the expert, the Armenian banks have around $400mln excess of dollar liquidity.

Avagyan noted that if the process of dedollarization starts in Armenia, it may result in sharp decrease of USD exchange rate, reaching AMD300/USD 1. However, it is undesirable, said Avagyan.

Head of the Department on Macroeconomic Policy Development at the Armenian Ministry of Finance Armen Hayrapetyan also agreed that dedollarization trends are observed in Armenia’s banking system, but refrained from making forecasts concerning the exchange rate this year.

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