Armenia’s $5.9 billion reserves cover more than four months of imports: former Finance Minister calls this a hedge against external shocks

YEREVAN, July 31. /ARKA/. Armenia’s $5.9 billion international reserves cover more than four months of imports and currently provide a fairly reliable hedge against external shocks. This was stated by former Finance Minister Vardan Aramyan in an exclusive interview with ARKA.

According to him, the adequacy of international reserves is assessed not only by their absolute volume but also by the number of months of imports of goods and services they can cover.

“In Armenia, the average monthly import of goods and services is approximately $1.4 billion. Therefore, reserves of $5.9 billion cover more than four months of imports, with a minimum safe limit of three months,” Aramyan said.

At the same time, he cautioned that international reserves cannot serve as a permanent source of financing external imbalances.

If the current account deficit persists at a high level, and exports, tourism receipts, and remittances decline significantly, reserves may begin to decline over time.

“At the current stage, this level of reserves provides protection, but only if external shocks are not prolonged and large-scale,” the former minister emphasized.

According to Fitch Ratings, Armenia’s international reserves reached a record $5.9 billion at the end of May 2026, thanks to the Central Bank’s purchase of dollars on the domestic market. Since the beginning of the year, the regulator has acquired approximately $1.1 billion in foreign exchange reserves. Fitch forecasts that by 2028, reserves will cover 3.6 months of current external payments, compared to a median of 4.5 months for countries rated ‘BB.’ Gold is not included in Armenia’s international reserves.

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