YEREVAN, February 23. /ARKA/. Last week, the Armenian financial market was distinguished by intensified institutional interactions in the banking sector and debt market dynamics. External ratings assessments, cryptoasset market development, and the operational parameters of the banking system remain in focus. The foreign exchange market operated within the regulatory guidelines. Amid ongoing institutional initiatives, attention remains focused on the stability of credit and deposit flows.
1. Foreign Exchange Market: Dram Exchange Rates Remain Stable
Official exchange rates against the Armenian dram on February 20 were as follows: US dollar – 376.82 drams, euro – 443.25 drams, Russian ruble – 4.9008 drams. Exchange rate dynamics throughout the week were characterized by moderate fluctuations without any sharp fluctuations.
Such muted volatility could facilitate transaction planning for banks and corporate clients, reduce operational risks, and simplify the servicing of international contracts for financial institutions and businesses.
2. Ratings: S&P Global Ratings Upgrades Armenia’s Outlook to Positive
The international rating agency S&P Global Ratings has revised the outlook on Armenia’s sovereign rating from stable to positive, maintaining the ratings at BB-/B across all key categories.
The outlook change reflects an assessment of the country’s macroeconomic stability and fiscal policy outlook, which could impact the perception of credit risk for foreign and domestic investors. A positive outlook from an international rating agency could create a more favorable environment for attracting external financing and contribute to increased interest in Armenia’s debt instruments on international markets. 3. Cryptocurrencies: Banks Show Interest in Licensing Digital Asset Transactions
The cryptocurrency market in Armenia is gaining momentum: according to Daniel Azatyan, head of the Union of Armenian Banks, 2-3 commercial banks are planning to obtain separate licenses to handle crypto asset transactions.
This trend may indicate growing customer demand and banks’ intention to develop digital asset services within the legal framework. This could signal the beginning of the institutional integration of crypto assets into banking services.
4. Loan Portfolio: Growth and Structure of Banking System Investments
By the end of 2025, the loan portfolio of the Armenian banking system increased to 7.9 trillion drams from 6.4 trillion drams in 2024, with consumer loans accounting for the largest share (23.2%) and mortgage lending at 21.3%. The growth in lending activity may signal renewed demand for household and business financing and a strengthening of the banking sector’s role in lending to the real economy.
5. Banking Profit: The System Increased Total Financial Result
According to the Union of Banks of Armenia, the banking system generated a total profit of 421 billion drams in 2025, compared to 361 billion drams in 2024. Bank assets reached 12.8 trillion drams, deposit portfolios reached 7.5 trillion drams, and total capital reached 2.2 trillion drams.
The increase in profit may reflect operating results against a backdrop of consistently high lending and a stable deposit volume, which is important for the financial stability and capitalization of the banking system. 6. Inflation: World Bank Analysis of Consumer Price Structure
According to a World Bank survey, Armenia’s 12-month inflation in January 2026 was 3.8%, with about two-thirds of this rate driven by a 5.9% increase in food and non-alcoholic beverage prices.
The inflation structure can demonstrate the influence of underlying components on overall consumer price movements, which is important for monetary policy and real household income.
Weekly Summary
The past week demonstrated active institutional dynamics in the Armenian financial market: key rating assessments and moves toward licensing cryptoasset operations form the basis for future development of the investment and technology segments. Lending activity and growth in total banking system profits confirm the resilience of the banking sector. The foreign exchange market operated within the current stable environment, and moderate inflation maintained favorable conditions for risk management and operational activities. These signals may indicate the continued functioning of the market in a stable environment and adaptation to new instruments and institutional practices.
