ArmInfo. In Armenia, the dollarization of resident loans increased from 30.8% to 32.1% in May 2026, but this only marginally affected the dram component, which dominates the portfolio.
It should be noted that the historical maximum of loan dollarization was recorded in February 2016 – 64.4%, but over the following three years, this dominance declined, and by May 2019, the dram component had taken over, reaching 50.1%. From that point through May 2025, the dramization of the loan portfolio increased to 69.2%, decreasing only slightly to 67.9% by June 2026. This is evidenced by data from the Central Bank of the Republic of Armenia, calculated based on the indicators of banks and credit companies.
At the same time, the regulator notes that the level of dollarization in residents' deposits and loans, having reached a historical maximum of 66.8% in August 2015, then declined over the next four years and, in July 2019, the baton passed to the dram component, whose level has since increased from 50.2% to 67.7% in May 2026 (versus 64.6% in May 2025). This reduced the share of foreign currency deposits and loans in the money supply from a historical maximum of 55.2% in January 2016 to 27.8% in May 2026, i.e. The dramization rate increased from 44.8% to 72.2% over this period (compared to 69.5% in May 2025).
In particular, the dollarization rate in resident individual demand deposits as a percentage of total individual demand deposits reached a historical maximum of 56.4% in January 2015, but two years later, in January 2018, the dram and foreign currency components were completely equal. Subsequently, the dollarization rate in this portfolio declined more often than it increased, which continued until February 2022, when this indicator regained its dominant position. Its further growth throughout the year nearly returned it to its historical maximum of 55.8% in February 2023 (compared to a record 56.4% in January 2025). This shift toward the foreign currency component in individual demand deposits in 2022 and partially in 2023 was explained by the influx of a large number of relocated individuals (mainly from Russia) into Armenia, who opened accounts in Armenian banks en masse to conduct financial transactions, including money transfers. However, as the excitement subsided, the dollarization of individual demand deposits declined, finally handing over the dominant role to the dram component in May 2024 – 50.3%. Since then, the dramization rate of resident individual demand deposits has increased, reaching 61% in May 2026 (versus 58.1% in May 2025).
In resident individual term deposits, the dollarization rate reached a historic high of 74.8% in February 2016, after which it declined for almost six months, with the dram component becoming dominant in April 2022, reaching 50.8%. This decline lasted only three months, and the foreign currency component regained its dominance. However, a slight gap and fluctuations in the up-and-down ratio weakened its position by May 2023, with the dram component becoming dominant at 50.3%. Since then, the dramization rate of resident individual term deposits has increased, reaching 61.4% in May 2026 (versus 57.2% in May 2025).
It should be noted that in the turbulent year of 2022, the decline in loan dollarization was driven by passive lending, which banks preferred to generate excess profits from relocators' foreign exchange transactions, from selling them international cards at high prices, and from increased commissions on their money transfers. In 2023, a more pronounced dramization of the loan portfolio was facilitated by legislative restrictions on foreign currency mortgages for residents. It's worth noting that the share of mortgages in banks' total loan portfolios has declined from 23% to 20% over the past three years, while consumer loans have also declined from 50% to 47%, accompanied by a slowdown in double-digit growth from 32% to 16%. Meanwhile, the total loan portfolio, previously supported by high mortgage activity, has seen a more moderate acceleration in annual growth, advancing from 20% to 28% over this period. The dram component in banks' mortgage portfolios has already reached 95.4% (according to Central Bank data on resident loans as of May 2026).
According to the Central Bank of Armenia, the volume of lending by resident banks exceeded 8.6 trillion drams by June 2026. In particular, dram-denominated loans exceeded 5.8 trillion drams, while foreign currency loans amounted to 2.8 trillion drams, with the annual growth of both the former slowing from 28% to 26%, and the latter from 29% to 27%. Consumer loans and mortgages account for the largest volumes (a total of over 3.7 trillion drams, an increase of 21.4%). Among economic sectors, the industrial sector, trade, catering/services, construction, transportation, and communications are the most favorable recipients of foreign currency loans, while in the agricultural sector, conversely, dram-denominated loans predominate.
Of the deposit structure, which exceeded 7.8 trillion drams by June 2026, 6.2 trillion drams are resident funds, 67.6% of which are in drams. The volume of the latter accelerated in growth from 19% to 31%, while the growth of residents' foreign currency deposits accelerated more moderately - from 2% to 14%. In particular, demand deposits of residents amounted to 2.6 trillion drams, and time deposits - 3.7 trillion drams, with the former growing year-on-year by 18% and the latter by 28%. This kept the growth of the total portfolio of residents' deposits at 16%. At the same time, deposits of non-residents began to decline due to the decline in dominant foreign currency deposits (the calculated exchange rate of the dram against the US dollar as of June 30, 2026 was 367.89 drams / $ 1).
