{"id":149887,"date":"2023-07-31T08:01:42","date_gmt":"2023-07-31T08:01:42","guid":{"rendered":"https:\/\/armbanks.am\/2023\/07\/31\/251015\/"},"modified":"2024-12-15T13:51:55","modified_gmt":"2024-12-15T13:51:55","slug":"fitch-expects-armenian-dram-to-moderately-depreciate-in-2023-24","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2023\/07\/31\/149887\/","title":{"rendered":"Fitch expects Armenian dram to moderately depreciate in 2023-24"},"content":{"rendered":"\n

YEREVAN, July 31. \/ARKA\/. <\/strong>Sharp increases in money transfers and movement of migrants from Russia have contributed to a sustained strengthening of the dram since mid-2022, Fitch\u00a0Ratings said as it has upgraded Armenia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-‘ from ‘B+’. The Outlook is Stable.<\/p>\n\n\n\n

It says the strong dram and the easing of global commodity prices caused inflation to fall into negative territory in June (-0.5% yoy) from a peak of 8.1% in January-February. Core inflation is also declining, from an average of 8% in 1Q23 to 1.5% yoy in June, notwithstanding strong wage growth (18% yoy as of May 2023), reducing concerns over economic overheating. Fitch expects the dram to moderately depreciate in 2023-24, albeit still to levels stronger than before the start of the Ukraine conflict.<\/p>\n\n\n\n

Armenia benefits from strong support and technical assistance from a range of multilateral and bilateral creditors.<\/p>\n\n\n\n

As of May 2023, an estimated 78% of external public debt was owed to official lenders, offering favorable financing conditions. Armenia is also the beneficiary of a 36-month USD172 million stand-by arrangement with the IMF, although authorities are currently treating this as precautionary.<\/p>\n\n\n\n

The Armenian banking sector has favorable profitability (return on equity of 18%), asset quality (non-performing loan ratio of 2.6%) and capitalization (Tier 1 capital ratio of 18.7% as of May). Deposit dollarization levels have been stable, at 52.3% as of May 2023, while loan dollarization declined slightly to 34.8% as of May.<\/p>\n","protected":false},"excerpt":{"rendered":"

Sharp increases in money transfers and movement of migrants from Russia have contributed to a sustained strengthening of the dram since mid-2022, Fitch\u00a0Ratings said as it has upgraded Armenia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-‘ from ‘B+’. The Outlook is Stable<\/p>\n","protected":false},"author":1,"featured_media":176670,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[12159,9216],"tags":[],"class_list":{"0":"post-149887","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-exchange-market","8":"category-news"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/149887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=149887"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/149887\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media\/176670"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=149887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=149887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=149887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}