Head of the Central Bank of Armenia sees no reason to panic over the depreciation of the dram

YEREVAN, June 5. /ARКА/. In the current situation in Armenia, there is no reason to panic over the depreciation of the dram, says Martin Galstyan, head of the Central Bank of Armenia.

“The Central Bank should neither artificially strengthen nor weaken the exchange rate,” he said on the Rearrange podcast.

Galstyan believes it is best for the exchange rate to be determined by the market, not the Central Bank.

“The exchange rate should be based on supply and demand in the market, and the Central Bank should focus on its job—price stability, not exchange rate stability—because the exchange rate is a tool for ensuring macroeconomic and external balance,” he explained.

According to Armstat, in May 2026, the average settlement exchange rate of the Armenian dram to the US dollar was 368.5 drams, compared to 386.6 drams in May 2025. The 0.8% decline in consumer prices recorded in Armenia in the reporting month compared to April of the same year was accompanied by a 1.5% reduction in the exchange rate of the Armenian dram against the US dollar (the dram strengthened).

spot_img

POPULAR

Fitch Ratings affirmed Armenia’s rating at ‘BB-‘, maintaining a positive outlook

International rating agency Fitch Ratings has affirmed Armenia's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'BB-' with a Positive Outlook.

Converse Bank Completes the Placement of EBRD Bonds

Converse Bank acted as the EBRD's key partner throughout the transaction, arranging the bond issuance and the guaranteed placement of the bonds

Fitch: Armenia’s International Reserve Adequacy to Remain Below That of Similar-Rated Countries by 2028

Armenia's international foreign exchange reserves have reached a record high, but their sufficiency to cover the country's external needs in the medium term will remain below the average for countries with similar credit ratings, according to a report by the international rating agency Fitch Ratings.

Armbanks Weekly Digest: Key Events in the Armenian Financial Market (July 6–12)

The week in Armenia's financial market was marked by accelerating annual inflation and activity in the government and corporate securities markets.

MONEYVAL recommended Armenia strengthen its fight against money laundering and confiscation of criminal assets

The Council of Europe's Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) noted Armenia's progress in developing its system for combating financial crime, but recommended strengthening the effectiveness of money laundering investigations, asset confiscation, and oversight of certain economic sectors.

LATEST NEWS

spot_imgspot_imgspot_img