Stability of Armenia’s financial system poses no threat – head of Central Bank

YEREVAN, March 6. /ARKA/. Armenia’s financial system’s stability is not threatened at present, the Chairman of Central Bank Martin Galstyan said speaking at an economic forum Sunday hosted by the Russian-Armenian University.

According to him, the financial “tsunami” caused by the arrival of tens of thousands of Russian and other nationals because of the Russian-Ukrainian confrontation, has not created risks for the Armenian financial system.

He noted that the Central Bank has raised countercyclical buffers recently by requiring banks to allocate over 90 million drams in case problems arise in the future.

“Although the system is extremely capitalized and liquid at the moment, the Central Bank tried to respond to the influx of large amounts of money, the phenomenon of which has not been sufficiently studied at the moment,” the Central Bank governor said.

“The results of surveys conducted by foreign partners show that the number of foreign nationals who have arrived in Armenia and who associate their future with Armenia has dropped significantly to 12%”, Galstyan informed.

On the whole, according to him, the whole macro-prudential toolkit of the Central Bank is fully involved in order to mitigate future shocks.

According to the Central Bank, the net inflow of remittances in Armenia made a record $2.5bln in 2022. Russia ranked first (about 70%) and the USA was second. According to EDB, Armenia attracted a record $5.2 bln in remittances in 2022 (2.5 times growth). –0-

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