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

ADB expects inflation in Armenia to accelerate to 3.8% in 2026, despite slower growth

The Asian Development Bank (ADB) expects inflation in Armenia to accelerate in 2026, despite slower growth.

Ranking of most profitable banks in Armenia based on results of first quarter of 2026

ARKA News Agency has published a ranking of the most profitable banks in Armenia based on the results of the first quarter of 2026.

Armenian banks’ net profit in Q1 2026 increased by 2.3% to AMD 103.5 billion

The total net profit (after tax) of Armenian banks in Q1 2026 amounted to AMD 103.48 billion, compared to AMD 101.18 billion in Q1 2025, an increase of 2.27%. Moreover, compared to the previous quarter, Q4 2025, the increase was 5.84%.

Armenia’s gross reserves rose to $5.5 billion in March, providing 4.1 months of import coverage – WB

Gross reserves in Armenia increased to $5.5 billion at the end of March, equivalent to 4.1 months of import coverage, according to the World Bank's "Armenia Monthly Economic Update – March 2026."

Unibank issues USD bonds with a 5.6% yield

Unibank announces a new issue of USD bonds in the amount of 5 million USD.

LATEST NEWS

spot_imgspot_imgspot_img