In Armenian banks, the volume of deposits exceeded 2.7 trillion drams by August 1, 2018, and the excess of the currency mass began to decline

ArmInfo. The volume of  deposits in Armenian banks exceeded 2.7 trillion drams ($ 5.6  billion) by August 1, 2018. It is noteworthy that this indicator  after a decline in January-April by 3.3%, jumped for May-July - by  6.3%. As a result, the growth for January-July was 2.9%, and in the  annual context (July 2018 to July 2017) - 8%.

According to the Central Bank of Armenia, the structure of deposits  for the currency component now accounts for 59.3%, against 62.2% a  year earlier. The absolute value of this indicator, having increased  by only 2.4% over the year, amounted to 1.6 trillion drams ($ 3.3  billion). Against this background, the share of the dram component  increased from 37.8% to 40.7%, jumping by 13.9% in absolute terms to  1.1 trillion drams ($ 2.3 billion). In the current year, foreign  currency deposits, after a decline in January-April by 5.7%, jumped  by 7.8% in May-July, while drams during these same periods  demonstrated a stagnation out of 4.4% growth.

Deposits of non-residents decreased by 9.1% to 574.8 bln drams ($ 1.2  bln), which was mainly caused by a drop in the dram component (by  28.7%) compared to the currency component (by 3.3% %). Against this  background, residents' deposits showed a 12.1% growth to 2.1 trillion  drams ($ 4.4 billion) due to a dramatic climb of the drams (by 21.4%)  with a modest 5% increase in foreign exchange rates. But only in the  context of 2018, namely, January-July, deposits of non-residents  increased by 10.8%, and residents - by 0.9%, with non-residents  preferring to increase foreign currency deposits by 14.5%, reducing  the dram deposits by 3.4% while residents, on the contrary, increased  dram (by 5.7%), reducing foreign exchange (by 2.9%).

It should be noted that this year, by the end of April, at the height  of the velvet revolution, deposits of both non-residents and  residents decreased, respectively, by 8.9% and 1.9%, with the former  almost equally aloof and foreign exchange and drams, while in the  second the decline in foreign currencies was accompanied by a meager  growth of drams. But already in May, when the revolutionary movement  entered the phase of the victorious climax, there was a growth that  fully restored by the end of July an upward trend: deposits of  non-residents increased by 21.6%, and residents by 2.9%. In  particular, for May-July non-residents increased foreign exchange  deposits by 25%, and drams - by 7.9%, against which the growth of  residents' deposits was too modest - 1.9% foreign currency and 4%  AMD.

Deposits of residents, broken down into urgent and on demand  deposits, grew by 11.4% and 13.4%, amounting to 1.5 trillion and 653  billion drams, respectively, in particular the high growth of the  dram component (22.2-20%) was accompanied by a modest increase  currency (4.3-7%). Only in January-July 2018, the growth of deposits  of urgent and post-mortem was equally small - 0.9%, with a low growth  of the dram component by 6.9-3.6%, accompanied by a 3.3-1.7% decline  in the currency. If we consider the behavior of depositors from the  beginning of the velvet revolution to its culmination, then the  following picture emerges: by the end of April, a significant  slowdown in the growth of urgent to 1% was accompanied by an equally  significant drop in demand deposits (by 8.2%), and by August, in the  stagnation against the backdrop of 9.9% growth in deposit holdings.  Namely, the meager growth of term AMD deposits was neutralized by the  same decline in the term foreign exchange, while the dram and  currency components of the demand deposits showed almost the same  high growth (9.5-10.6%). Residents in term deposits are dominated by  foreign exchange (56.1%), and in deposit accounts - dram (52%). In  time deposits by August 1 this year. the funds of physical persons  dominate - 73.6%, and in deposits of demand - funds of corporate  clients - 55.4%, against 75.4% and 59.7% a year earlier.  Interest  rates on AMD deposits as of August 1, 2018 were formed at the level  of 8.69%, against 8.82% a year earlier and 8.41% at the end of 2017.  Moreover, in late April this year. the rate jumped to 8.97%, falling  in May to 8.48%, but already since June there has been an increase.  (The calculated rate of the dram as of July 31, 2013 is 480.95 dr / $  1).