Stable prices and macroeconomic environment to reduce dollarization in Armenia - regulator

08.12.2015 15:37
Stable prices and macroeconomic environment to reduce dollarization in Armenia - regulator

YEREVAN, December 7. /ARKA/. Stability of prices and general macroeconomic environment are the only ground for dollarization reduction and enhancement of confidence in the national currency in Armenia, the central bank's monetary policy department reports.

«Confidence in any currency first of all depends on its paying ability,» the central bank says. «The top goal of the central bank is to ensure price stability, which will ensure a stable payment capacity to the national currency.»

The central bank's department says the regulator is guided by certain principles in its efforts to down dollarization in the country.

In particular, the law states that the only legal currency in calculations and price-making process is the Armenian dram.

Besides, deals in drams need lower expenses than those carried out in foreign currencies.

This principle is working in financial regulation principles, including mandatory reservation, insurance of deposits and also in all normative mechanisms of regulation and supervision.

According to the central bank's report, dollarization in Armenia stood at 64.5% in September 2015 after growing 0.6% since the beginning of the year. ---0----


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