YEREVAN, December 20. \/ARKA\/. IMF newly appointed Resident Representative to Armenia, Mark Horton, said today that value of Armenian dram has been somewhat overestimated.<\/p>\n
He finds the current account deficit that makes up 15% of GDP too high for Armenia.
\nIn his opinion, value of the national currency should be changed.<\/p>\n
Pointing out that Armenian banks\u2019 liquidity is very high, Horton assumed that this was perhaps due to high dollarization.<\/p>\n
Banks have great dollar liquidity. This factor impacts exchange rates and supports the dram.<\/p>\n
However, Horton thinks this situation is due to latest developments in the banking sector and changes in norms. He doesn\u2019t rule out that the current situation is temporary.<\/p>\n
The IMF resident representative said that banks had accumulated dollars over the summer thanks to changed reservation norms, but this dollar liquidity would dwindle later.<\/p>\n
On April 14, the Central Bank of Armenia tightened capital adequacy and currency regulation norms.
\nAs a result, banks ought to reserve 18% of their capital for risky loans now instead of former 12%.<\/p>\n
Horton also said that deposit dollarization that reached its peak of 73%-75% six months ago has already fallen to 60%.<\/p>\n
In his opinion, Banks should also attract deposits in drams.-0—<\/p>\n","protected":false},"excerpt":{"rendered":"
IMF newly appointed Resident Representative to Armenia, Mark Horton, said today that value of Armenian dram has been somewhat overestimated.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[12159,9216],"tags":[12345,15917,12510,308],"class_list":{"0":"post-18133","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-exchange-market","7":"category-news","8":"tag-dram","9":"tag-imf-2","10":"tag-value","11":"tag-308"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/18133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=18133"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/18133\/revisions"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=18133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=18133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=18133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}