Friday, February 26 2021 15:47
Alina Hovhannisyan

Deputy Head of the Central Bank: Armenia`s financial system is quite  stable, and currency risks are quite balanced

Deputy Head of the Central Bank: Armenia`s financial system is quite  stable, and currency risks are quite balanced

ArmInfo.The devaluation of the dram is mainly associated with trend expectations, which are usually short-term in nature. Deputy Chairman of the RA Central Bank  Nerses Yeritsyan stated this at the meeting of the Standing Committee  of the National Assembly of Armenia on Financial-Credit and Budgetary  Affairs.

"In our opinion, there is no uncontrollable situation.   Because the state of the country's current account has improved, and  this is a fundamental factor for such an assessment,> he stressed.  Continuing the thought, Yeritsyan added that the financial system of  Armenia is quite stable, and the currency risks are quite balanced.  "That is, the position of the financial system is such that its  liabilities are fully covered by liquid foreign exchange assets," the  Deputy Chairman of the Central Bank of Armenia said.

In this regard, he noted that throughout the year the Central Bank  provided the economy with both foreign exchange and AMD liquidity in  order to create an opportunity to service the economy and the  financial system.

Answering the parliamentarians' question regarding currency  interventions, Yeritsyan noted that since the beginning of the year,  the Central Bank has been mainly buying the market. <After the start  of the coronavirus pandemic, during the first week, we made 1-2  foreign exchange interventions. In total, the volume of net sales in  the first half of last year amounted to about US $ 40 million. But  these steps were episodic, "he explained.

At the beginning of the year, the situation was the opposite. "Due to  the strong revaluation pressure, we bought, and in this regard, the  year was unprecedented. Because usually in January there is a high  demand for currency, but because of the coronavirus, the opposite  happened>, - said the deputy head of the Central Bank. During this  period, according to him, there was also a certain outflow of  deposits, which, however, returned to the system within a month.  "This speaks of the restoration of citizens' confidence from a  macroeconomic point of view," he stressed.

With regard to confidence in the financial system, Yeritsyan noted  that once again, going through the crisis, customers remain loyal,  especially those who have small deposits and incomes in the national  currency. "I think that in the future we should focus on deepening  and expanding financial services for this type of clients, which will  strengthen stability in our country and protect against external  shocks," he stressed.  To recall, a noticeable devaluation of the  dram began to be observed in the retail foreign exchange market of  Armenia from the second decade of October 2020, with the approach of  November 18 close to the psychological mark of 500 AMD / $ 1. By  November 23, the exchange rate reached 507 AMD / $ 1 on average,  continuing to weaken further more pronounced. Already on December 15,  the dram devalued against the dollar and euro to 528 AMD / $ 1 and  640 AMD / 1 EUR. To note for comparison that at the end of 2019, the  AMD exchange rate against the US dollar was 479.3 AMD / $ 1 on  average, and 531 AMD / 1 EUR against the euro.

To note in 2020, the RA Central Bank made interventions in the  foreign exchange market for a total of $ 328.750 million, of which $  90.9 million (January-February and April) for buying foreign currency  and $ 237.850 million for its sale (March-April, November- December). 


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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