YEREVAN, February 23. /ARKA/. Armenia’s international reserves strengthened significantly in 2025, providing an important buffer against unpredictable external factors, according to a report from international rating agency S&P Global Ratings.
“Gross international reserves reached a record $5.2 billion in January (18% of GDP), compared with approximately $3.3 billion a year earlier,” the report states.
The agency’s analysts point out that the growth was driven by a combination of government Eurobond placements and foreign currency purchases by the Central Bank, supported by significant financial and capital inflows from abroad.
“These reserve buffers should allow the Central Bank to mitigate risks associated with potentially volatile capital inflows into the banking system,” the report states.
S&P also notes that the banking sector’s short-term external debt (primarily non-resident deposits) remains relatively high at $3.3 billion.
“We expect reserve growth to be more moderate, at approximately 5% annually, through 2029,” the report states.
According to the Central Bank of Armenia, Armenia’s gross international reserves as of December 2025 amounted to $5,086.3 million, up from $4,609.9 million in November. According to the World Bank’s “Armenia Monthly Economic Update – December 2025,” this increase is primarily due to grants and loans related to housing reform. It also notes that this is the highest recorded level, equivalent to 4.1 months of import coverage.
