The situation in the deposits market in Armenia continues to attract close attention.
So, the year 2011 turned out to be a very favorable sector of banking services for this: the total volume of deposits of 21 combustions of Armenia in 2011 amounted to more than 969.7 billion drams (excluding the accumulated interest), and the growth rate of population deposits in 2011 increased from 6.9 % to 38.1%. Such a unique increase in deposits was supposed to lead to a decrease in interest rates, however, in reality, according to the Central Bank of the Republic, we see that in 2011 the average level of bets on the drama deposits of banks in the country increased from 9.6% to 10.6% , and according to invaluate deposits – from 6.4% to 7%. In principle, an increase in the volume of the deposit base of the commercials should lead to an increase in credit proposal to the real sector of the economy and the population, and, accordingly, reduce the cost of loans. However, in 2011, as evidenced by official data, the average interest rate on loans in dramas has reduced by only 1 p. p. — up to 17.1%, and in dollars – by 0.3 p. p., up to 14.2%.
Of course, the growth of deposit rates brings additional income to the population, but in the context of the growth of consumer prices in Armenia, this is more likely to compensate for the losses from inflation. Moreover, the received interest income often does not even compensate for the depreciation of funds, since the level of real inflation is very high. Recall that official inflation in 2011 was recorded at 7.7%.
Accordingly, the question arises which deposits ensure the greatest safety of free funds? It seems that the best option is diversification – it is necessary to store part of the funds in dramas, part in dollars and rubles. At the same time, for storage of relatively small amounts and receiving income from them in a short period, say, up to one year (if your income in the national currency) is the best currency that is precisely the drama – the interest rate on them is simply more. So, the average annual interest rate on short -term dramatic deposits in December 2011 amounted to 10.2%, increasing by 1.4 p a year. p. against 6.1% (growth of 1 p. p.) for dollar deposits.
If we talk about a longer preservation of savings, then here you should definitely choose a combination of currencies of the dollar ruble, since the euro at the moment is a dubious currency for investments. At the same time, counting on the fact that deposits will be able to significantly increase the capital’s capital, would be wrong. At the moment, deposits are just a tool to compensate for inflationary risks.
