In Jan-Apr 2015 Armenia s international reserves grew by 0.5% to $1.496 bln

In Jan-Apr 2015, Armenia's international reserves grew by 0.5% to $1.496 bln.  According to the Central Bank of Armenia (CBA), $1.495 bln of the specified amount is external assets (4% in Jan-Apr 2015), $7 mln is the share of SDR in the IMF (13% growth in Jan-Apr).  Other reserve assets were fixed at negative $4 mln versus positive $45.1 mln in early 2015. Other forex assets amounted to $21 mln (85.8% growth in Jan-Apr 2015).

The source says that in the structure of external assets $1.110 bln was placed in securities (up 17.4% in Jan- Apr 2015), $385.2 mln was the forex cash and the deposit funds (down 21.8% in Jan-Apr 2015).  $307.9 mln out of the $385.2 mln was placed in other countries' central banks, in the BIS and in the IMF (down 27.4% in Jan-Apr 2015), and $77.3 mln was placed in the foreign parent banks (up 13.3% in Jan-Apr 2015).

The calculations were based on the exchange rates on 30 April 2015:  476.42 AMD/$1, $1.4/1SDR, $1.12 USD/1EUR.

To note, the share of banking gold in Armenia's gross international reserves was zeroed out in December 2013. In 2014, Armenia's international reserves dropped by 34% to $1.489 bln. In 2013, the international reserves grew by 25% to $2.252 bln due to the grants and loans worth $270 mln, the debut Armenian eurobonds that allowed raising $690 mln (in Q3 2013), and redemption of the $500 mln stabilization loan provided by Russia in 2009. In 2012, the international reserves of Armenia fell by 7% to $1.799 bln. In 2011, they grew by 3.6% to $1.932 bln. In 2010, Armenia's international reserves amounted to $1.866 bln.

According to the CBA, in 2012-2014 the international reserves adequacy indices demonstrated the following trend: in Q3 2014 the international reserves ensured 4.2-month coverage of import (versus 5.4- month coverage in 2013 and 4.5-month coverage in 2012); the international reserves ensured 4.4-month coverage of the short-term debt (up to 1 year) versus 5.4 months in 2013 and 7 months in 2012; the ratio of international reserves to monetary stock was 0.8 versus 1.1 in 2013 and 1 in 2012. The CBA's traditional criteria for reserve evaluation are as follows: 3-month coverage of import; servicing of the short-term (up to 1 year) debt; and a preferable 0.2 ratio of international reserves to monetary stock.

To note, on June 30. 2015, Fitch Ratings downgraded Armenia's Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'B+' from 'BB-'. The Outlook is Stable. The issue ratings on Armenia's senior unsecured foreign and local currency bonds were also downgraded to 'B+' from 'BB-'. The Country Ceiling was revised to 'BB-' from 'BB' and the Short-term foreign currency IDR affirmed at 'B'. On January 15. 2015, Moody's Investors Service downgraded Armenia's issuer and government bond rating to Ba3 from Ba2, and changed the outlook to negative from stable.