Strengthening of armenian dram prompted by regulator’s decision to increase reserve requirement for foreign currency

YEREVAN, December 20. / ARKA /. The strengthening of Armenian currency, the dram, over the last two days against US Dollar and euro should be reviewed in the context of measures taken by the Central Bank to stabilize the tension in the financial market that saw a dramatic increase of the US Dollar and euro against dram.

One of those measures was a Central Bank decision taken on December 17 to increase the reserve requirements for commercial banks in foreign currency from 12% to 24%. The reserve requirement for the national currency did not change staying at 2%.

Prior to this decision, the minimum amount of required reserves for the Armenian banks was 12%, 9% of which were to be reserved in drams and 3% in US dollars.

Reserve requirement is regarded as a most successful tool of regulatory influence on monetary sphere. Thanks to it, the regulator solves simultaneously two tasks: regulates the amount of money and the risks of commercial banks.

On December 18, immediately after the entry into force of the above decision of the Central Bank, the exchange rate of US Dollar slashed by 30.2 points to 497 drams. The downward trend continued and on December 20 one USD traded at 464.57 drams.

To stabilize the situation in the currency market and curb speculative currency trading the Central Bank had earlier upped the Lombard repo rate from 10.25% to 21% on December 3 and on December 8 began auctioning fixed amount of hard currency to local banks. From 8 to 12 December that amount was worth $6 million. The amount was then reduced to $4 million.-0-

spot_img

POPULAR

Members of the Board and the CEO of the Universal Health Insurance Fund have been elected in Armenia

Members of the Board of Trustees and the CEO of the Universal Health Insurance Fund have been elected in Armenia, the government press service reported.

Unibank and “Vanq” Charity Fund Support Wheelchair Basketball Exhibition Game in Yerevan

Paralympic gold medalists and U.S. Sports Envoys Rose Hollermann and Steve Serio visited Armenia to conduct a wheelchair basketball masterclass and an exhibition game. Unibank and the “Vanq” Charity Fund jointly sponsored the concluding event held in Yerevan, supporting an initiative that combined sport with a powerful message of determination, resilience, and overcoming barriers. 

Yerevan’s budget revenues exceeded targets by 9.7% for the first five months

As of May 31, 2026, Yerevan's budget revenues totaled 40.3 billion drams, compared to the planned 36.4 billion drams for January-May, reported David Hakobyan, Acting Head of the Revenue Accounting and Collection Department at the Yerevan City Hall.

Unibank and Unisport took part in the “Tricolor” Yerevan Beat Run

Employees of Unibank and the Unisport club took part in the "Tricolor" Yerevan Beat Run.

Euro fell 1.94 points against the Armenian dram, while the dollar and ruble remained unchanged: Central Bank of Armenia

The average market exchange rate for the US dollar against the Armenian dram, formed on the Armenian foreign exchange market as of June 23, 2026, increased by 0.01 points compared to 368.08 drams on June 22.

LATEST NEWS

spot_imgspot_imgspot_img