Thu, 31 July
32.1 C
Yerevan
USD: 383.94 RUB: 4.85 EUR: 450.25 GEL: 141.78 GBP: 516.63

S&P Global Ratings expects the dram to begin to depreciate as the current account deficit widens and transfers slow.

YEREVAN, August 28. /ARKA/. We expect the dram to begin to depreciate as the current account deficit widens and transfers slow, S&P Global Ratings said

That said, it expects the exchange rate to act as a key shock absorber and the FX reserve buffer to remain broadly stable.

It says also that Armenia’s official reserves reached $4.1 billion in June, up 16% compared with the same period last year. Reserves have generally increased on the back of the Central Bank of Armenia’s (CBA)’s net purchases of foreign currency (FX) last year to absorb excessive FX inflows, stemming from higher tourist arrivals and significant capital and remittances transfers.

‘We expect the dram to begin to depreciate as the current account deficit widens and transfers slow. That said, we expect the exchange rate to act as a key shock absorber and the FX reserve buffer to remain broadly stable.’

According to the Eurasian Development Bank, in terms of real effective exchange rate, the Armenian dram appreciated by 33.6% in 2022. At the end of June 2023. the dram’s appreciation was 40% compared to the beginning of 2022.

By the end of July 2023 compared to the beginning of 2022, the Armenian dram has strengthened against the US dollar by 19.8% yoy, against the euro by 21.7% yoy, and against the Russian ruble by 32.4% yoy,” according to EDB. -0-

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Ranking of most profitable banks in Armenia based on results of first quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the first quarter of 2025.

Armenia’s economy to stabilize on 5.5% growth trajectory in 2025 – EDB forecast

According to EDB forecasts, Armenia's economy will stabilize on a 5.5% growth trajectory with domestic demand remaining the main driver of development.

Fitch expects inflation in Armenia to remain within the target level until 2027

International rating agency Fitch expects inflation in Armenia to remain within the target level until 2027, although soft fiscal policy and the projected moderate weakening of the dram create certain risks.

Moody’s upgrades Converse Bank’s ratings

Moody's Ratings has upgraded Converse Bank CJSC's long-term local and foreign currency bank deposit ratings to Ba3 from B1, aligning the Bank’s rating with Armenia’s sovereign rating.

LATEST NEWS

spot_imgspot_imgspot_img