YEREVAN, October 29. /ARKA/. In the face of a significant influx of foreign capital, the Central Bank of Armenia periodically conducts currency interventions to prevent serious turmoil in the currency market. Central Bank Chairman Martin Galstyan stated this in an interview with Hetq.
“In recent years, we have seen a significant capital influx into the Republic of Armenia – from various sources, from investors, from different countries. And this influx is often so large that the Central Bank is forced to act, fearing a market collapse,” Galstyan said.
He emphasized that the purpose of such actions is not to maintain a specific exchange rate, but to ensure stable market functioning.
“For example, a situation arises where there is an offer to sell $100 million on the market today, but there are no buyers. And this could lead to very serious turmoil,” the Central Bank chairman explained.
According to him, the regulator has recently been frequently acquiring excess foreign currency through interventions, buying dollars and supplying the market with drams.
“This is done to prevent a market collapse. Because if the market has one-sided quotesnthat is, there are sellers but no buyers this is one of the shortest paths to a market collapse,” Galstyan noted.
