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-
