IMF: Monetary transmission in Armenia remains constrained by dollarization

YEREVAN, December 23. /АРКА/. ‘Monetary transmission – the way in which central bank interest rate decisions transmit to bank loan and deposit rates and hence influence the lending and saving decisions of consumers and businesses – remains constrained by dollarization and shallow local capital markets. It is thus important to develop Armenian dram capital markets, and the CBA is advancing several initiatives in this regard,’, IMF Resident Representative in Armenia, Umang Rawat, said in an interview with the ARKA news agency.

According to him, ‘over the last years we have seen that the CBA has taken timely and effective actions to maintain price stability and strengthen its monetary policy framework.’

‘The CBA’s risk-based approach to monetary policy, centered on a prudent risk management approach and a high degree of transparency, has provided it with a solid foundation to lower its inflation target to 3 percent,’ Mr. Rawat said.

As per the information available on the Central Bank’s website, the dollarization rate has been consistently declining since March 2023, when it stood at 43.7%. According to the regulatory authority, by October 31, 2025, the overall deposit structure reached 7.01 trillion AMD, with 5.53 trillion drams being deposits from residents. Out of this, 3.63 trillion drams are in dram deposits, while 1.89 trillion drams are held in foreign currency deposits.-0-

spot_img

POPULAR

Central Bank: Armenia’s current public debt level is not a cause for concern

The current level of Armenia's public debt is not a cause for concern, stated Deputy Governor of the Central Bank of Armenia Hovhannes Khachatryan.

Central Bank of Armenia has kept the refinancing rate unchanged at 6.5% for the sixth consecutive time

At its meeting on August 4, the Central Bank's Board left the refinancing rate unchanged at 6.5% for the sixth consecutive time, the regulator's press service reported.

Central Bank of Armenia explained its decision to keep the interest rate unchanged

The Central Bank of Armenia kept the interest rate unchanged because it has not yet seen any deviation in inflation expectations from the target level, stated Deputy Chairman of the Central Bank Hovhannes Khachatryan.

Head of the Union of Banks of Armenia expects the situation with the acceptance of cash rubles by Armenian banks to be resolved

The situation with the acceptance of Russian cash rubles by Armenian banks will be largely resolved, stated Daniel Azatyan, Chairman of the Union of Banks of Armenia.

Average exchange rate of the Armenian dram to the US dollar in July was 366.8 drams, compared to 384.1 drams a year earlier

In July 2026, the average exchange rate of the Armenian dram to the US dollar in Armenia was 366.8 drams (in July 2025, the exchange rate was 384.1 drams).

LATEST NEWS

spot_imgspot_imgspot_img