Tuesday, November 12 2019 19:34
Karine Melikyan

Since the beginning of the year, the Central Bank of Armenia has  bought over $ 502 million, keeping the dram from excessive  revaluation 

Since the beginning of the year, the Central Bank of Armenia has  bought over $ 502 million, keeping the dram from excessive  revaluation 

ArmInfo.According to the assessment of the Central Bank of Armenia, domestic demand continues to remain high due to the growth of private consumption, which was  facilitated by the stimulating monetary policy implemented in recent  years and, partly, by the injection of significant dram liquidity  this year through other macroprudential instruments. This is noted in  the message of the Central Bank of the Republic of Armenia regarding  the results of 9 months of 2019, when economic activity increased by  7.1% and the services sector and the industrial sector acted as  drivers.  According to the source, in particular, this year the  Central Bank revised the mandatory reserve mechanism three times,  making a phased transition to the reservation in foreign currency  (instead of dram) of borrowed foreign currency funds. And with each  revision, the reserve ratio changed by 2%. As a result, liquidity was  freed in the banking system by almost 120 billion drams (about $ 251  million). On the other hand, the Central Bank, in conditions of high  offer of foreign currency, bought up foreign currency funds in the  amount equivalent to almost 240 billion drams (over $ 502 million).   The Central Bank's report also noted that high growth in lending by  banks to the economy continued, and especially high growth was  observed in consumer and mortgage loans.  The Central Bank believes  that the impact of fiscal policy on domestic demand in the period  under review continues to be restraining, despite a certain budget  deficit in the Q3.  It should be noted that the Central Bank of  Armenia was revising the reserve requirements for borrowed funds in  order to strengthen financial stability and provide the prerequisites  for creating currency liquidity buffers. In 2019, this standard  changed three times. The June change provided for: on attracted  dollar funds - 16% reservation in drams and 2% reservation in  dollars; on attracted Euro funds - 16% reservation in drams and 2%  reservation in euros; on funds attracted in other foreign currencies  (including on metal accounts) - 16% reservation in drams and 2%  reservation in dollars; and on attracted dram funds - reservation is  completely in drams. Later, another change in the norm of obligatory  reservation followed - accordingly, for the funds raised in foreign  currency, instead of the previous 16% of the reservation in drams,  14% were set, and the previous 2% of the reservation in foreign  currency was replaced by 4%. The latest change, dated October 7,  lowered these levels by another 2%, i.e. from the previous 14% and 4%  to the current 12% and 6%. As for the obligatory reservation for  attracted dram funds, it is carried out in drams. For funds raised by  banks on their own bonds issued, the required reservation is zero. 

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Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000