Armenia’s monetary base, money supply up in April 2008

Armenia’s monetary base, money supply up in April 2008

In April 2008, Armenia’s monetary base increased by 46.5%, with a 53.3% increase recorded in money supply.

The protocol on the refinancing rate for May 2008 prepared by the Central Bank of Armenia says that the monetary indicators were mostly in harmony with the trends forecast for the 2nd quarter.
The CBA reports a 4.6% annual increase in the dram multiplier in April 2008. The share of AMD deposits in money supply keep on increasing, with a 59.8% annual increase recorded. A 49% in cash in circulation was recorded as well. Foreign-exchange deposits in the AMD equivalent recorded a 4% increase, with a 21.1% increase recorded in foreign-exchange deposits in USD terms. A 39.4% annual increase in money supply was recorded.

The CBA also points out high rates of economic crediting – 75.6%. The ratio between AMD and foreign-exchange deposits is gradually changing in favour of AMD deposits – 61% in April 2008 against 58% last April.

In January-March 2008, Armenia’s money supply recorded a 55.3% annual increase, with a 6.5% increase recorded in AMD deposits. The annual dramalization coefficient was 31.7% against 37.6% in the corresponding period last year. A 20.6% dollarization level (the ratio between foreign-exchange deposits and money supply) was recorded – a 26.8% decrease. Foreign-exchange deposits increased by 2.9%. A 78.8% annual increase in economic crediting, with a 98.1% increase recorded in AMD credits alone.

By March 31, 2008, Armenia’s monetary base had amounted to 389.3bln AMD, with the country’s money supply totaling 678.7bln AMD. Cash in circulation outside the banking system totaled 302.5bln AMD, and fixed AMD deposits amounted to 116.8bln.