Majority of Armenians, 51.4 Percent, Prefer to Keep Their Money in Banks: Pashinyan

The majority of Armenians, 51.4 percent, prefer to keep their money in banks in Armenian drams. This was stated by Prime Minister Nikol Pashinyan on his Facebook page.

Currently, inflation in Armenia remains at a low, manageable level, and importantly, it is relatively stable. In the first half of 2019, the average inflation rate was 1.9 percent, while in July, the year-on-year inflation rate stood at 1.7 percent.

All of this is supported by a sustained increase in confidence in the national currency in recent times, which is also reflected in the decreasing inflation expectations among households. According to surveys conducted by the Central Bank, nearly all respondents (over 95 percent based on the second quarter of 2019) expect that price stability will be maintained in the future (1-5 year horizon), which is crucial for macroeconomic stability.

This indicates that households and organizations can plan their economic activities and the savings and investments they make much more effectively. The increased confidence in the national currency is also reflected in the continual reduction of the level of dollarization, which has decreased by approximately 4 percentage points over the last year, reaching 48.6 percent in July (the ratio of residents' foreign currency deposits to total deposits of residents).

This means that the majority of Armenians, 51.4 percent, prefer to keep their money in banks in drams, which is also very important as it reduces the currency risks for businesses and contributes to further improving the stability of the financial system. By the way, I have done the same. Recently, I sold my 'Hyundai' and I am keeping the money in the bank in drams.