YEREVAN, April 6. /ARKA/. From March 30 to April 5, the Armenian financial market focused on exchange rate dynamics, the publication of March inflation data, the meeting of the Central Bank’s management with the IMF mission, discussions of the reverse mortgage mechanism, the agreement between the CDA and UzCSD, and issues of disclosure by issuers in the capital market.
1. Foreign Exchange Market: Dollar Maintains Narrow Range, Euro Provides Sharp Impetus
Last week, the foreign exchange market saw the dollar maintain its fundamental stability, while the euro experienced more pronounced dynamics. According to the Central Bank of Armenia, the average market exchange rate for the dollar fluctuated between 377.54 drams on March 30 and 376.98 drams on April 3. During the same period, the euro initially fell to 432.19 drams, rose to 437.55 drams on April 1, and then fell to 435.22 drams on April 3. This could support a more predictable settlement environment for dollar transactions for banks and companies, while participants in euro-denominated foreign trade transactions must account for more significant short-term fluctuations.
2. Inflation and the Monetary Framework: March Indicator Reaches 4.5%
Armstat reported on April 3 that 12-month inflation in Armenia in March was 4.5%. Compared to February, prices increased by 0.7%. Furthermore, in January-March 2026, prices were 4.2% higher than in the same period of 2025.
This combination of data could increase attention to the relationship between price dynamics, interest rate policy, and instrument yields. This could maintain the relevance of assessing the cost of funding for financial institutions, current credit conditions for borrowers, and sensitivity to future macroeconomic signals for the market as a whole.
3. CBA and IMF: Macroeconomic situation, risks, and structural benchmarks on the agenda
On March 31, the Central Bank of Armenia reported on the final meeting between its Governor, Martin Galstyan, and the IMF Mission Chief for Armenia, Alexander Timan. According to the Central Bank, the parties discussed the macroeconomic situation, existing challenges, short-term policy directions, and the implementation of the Fund’s structural benchmarks.
Such a meeting could be important as an institutional signal for maintaining coordination between the national regulator and the international financial institution. In a context where inflation and exchange rate dynamics remain the focus, discussions of structural benchmarks and risk management reinforce the importance of a predictable regulatory framework.
4. Social and financial instruments: Armenia is preparing to introduce a reverse mortgage for pensioners
On April 2, Suren Tovmasyan, head of the Cadastre Committee, announced plans to introduce a reverse mortgage in Armenia. According to him, the mechanism will apply to pensioners who own real estate and will be implemented after the adoption of the relevant legislative package. It is envisaged that homeowners will be able to transfer their property to a reverse mortgage and receive monthly payments from the bank while retaining ownership of the property.
Since this represents a new financial instrument for the Armenian market, related to real estate, banking products, and long-term liabilities, this could mean a potential expansion of the range of retail instruments for the banking sector, and for the market, a discussion of new mechanisms for monetizing housing assets.
5. Capital Market Infrastructure: CDA Opens Foreign Nominee Account in UzCSD
On March 30, 2026, the Central Depository of Armenia (CDA) and the Central Securities Depository of Uzbekistan signed a cooperation agreement under which CDA will open a foreign nominee account in UzCSD. According to the Armenia Stock Exchange, this will enable the registration and safekeeping of securities, transaction servicing, and corporate actions in accordance with international standards.
This may indicate expanded infrastructure opportunities for professional participants and a stronger role for depositories in regional capital market networks. For the market as a whole, this could cement a trend not only toward an increase in the number of instruments but also toward the development of cross-border registration, safekeeping, and circulation channels.
6. Regulation and Transparency: The Ministry of Economy Links Capital Market Development to Issuer Disclosure
In an interview with ARKA News Agency published on March 30, Hasmik Zakaryan, Head of the Financial Infrastructure Development Department at the Armenian Ministry of Economy, stated that one of the key conditions for further deepening the capital market is regular and consistent disclosure of information by issuers. She also stated that discussions are focused on the market structure for the next 3-5 years, the role of the bond segment, encouraging the participation of non-bank issuers, and increasing secondary market liquidity.
According to the ministry, the capital market in Armenia has already shown growth in the corporate bond segment, but further development depends not only on the volume of issues but also on the quality of information available to investors. The Ministry of Economy also emphasizes the need for a balance between access to the market and an adequate level of investor protection, and the measures being discussed include standardization of information, digitalization, and simplification of procedures. This position may reflect the growing importance of transparency as a market condition for issuers, investors, and infrastructure participants. For companies, it may increase the importance of regular data disclosure. For investors, it may reflect the quality of the risk assessment framework. For the market as a whole, it may reflect a shift in emphasis from quantitative growth to institutional maturity and information comparability.
Weekly Summary
Price dynamics, the currency market, and the Central Bank’s contacts with the IMF formed the general backdrop of the week, while the applied agenda saw increased attention to capital market structure and new financial instruments.
The primary focus is shifting to the quality of market infrastructure and rules. This was evident in the topic of cross-border depository interactions, in the discussion of issuer disclosure standards, and in the introduction of a new reverse mortgage mechanism for pensioners as a separate instrument at the intersection of the banking and property sectors.
