ArmInfo. Armenia's gross international reserves (GIS) in October 2021 compared to October 2020 increased by 38.2% or by $ 885.5 million (versus a 6.2% decline in the previous year), exceeding $ 3.201 billion. Foreign assets in hard currency dominate in the GIS structure - $ 3.137 billion, and the share of SDR in the IMF accounts for $ 63.6 million.
According to the report of the RA Central Bank, foreign assets in hard currency reversed the y-o-y dynamics from 7.4% decline to 37.7% growth, and the share of SDR in the IMF slowed down growth from 4.6-fold to 66.7%.
In October 2021 alone, the GIS reached 0.3% growth (or $ 9.9 million) from the September 0.7% decline. This was accompanied by a reversal of the trend in the share of SDR in the IMF towards a meager growth of 0.001% since the September 64.3% decline, while the growth of foreign assets in hard currency slowed down from 3% to 0.3%. A year earlier, in September 2020, the GIS trend was downward (7.9%), due to a similar decline in foreign assets in hard currency (7.9%) with a 4.2% decline in the share of SDR in the IMF.
In January-October 2021, Armenia's gross international reserves increased by 22.4% or by $ 586 million (against a decline of 18.7% a year earlier). In their structure, foreign assets in hard currency increased by 20.3% (against a 19.9% decline a year earlier), and the share of SDR in the IMF increased 7.1-fold (against a 6.2-fold increase a year earlier).
During 10 months of 2021, the decrease in the GIS was observed in March-April, July and September. The decline in foreign assets in hard currency was also recorded in March-April and July-August. And the share of SDR in the IMF showed growth in April, August and October alone, and in April and August the increase was noticeable, and in October the change was almost imperceptible.
To note, on August 23, 2021, the largest ever distribution of SDR by the International Monetary Fund in the amount of $ 650 billion came into force. According to the distribution of SDR according to the promptly paid quotas of the IMF member countries, an amount of 123.4 million SDR (about $ 175.2 million) was allocated to Armenia. And in mid-December 2021, the IMF Board of Directors intends to consider a review on Armenia, and after the approval of the government's work results, the country will have access to $ 72.5 million (SDR 51.429 million) under the Stand-By Arrangement (SBA).
Prior to that, on May 17, 2019, the IMF approved the provision of a stand-by credit line to Armenia for a three-year "transit period" in the amount of SDR 180 million (equivalent to almost $ 248.2 million), or about 139.75% of Armenia's quota in the IMF. From this amount, it was planned that Armenia would immediately receive SDR 25.714 million (equivalent to nearly $ 35.5 million), with the remainder foreseen based on six half-year estimates. A year later, in mid-May 2020, the IMF increased its financial support to Armenia by SDR 128.8 million (about $ 175 million), which, together with the authorities' intention to attract resources accumulated within the SBA, made it possible to receive SDR 206 million (about $ 280 million), payable immediately. These loan funds are aimed at strengthening the economic foundations and policies of Armenia, as well as carrying out structural reforms, in particular, improving the efficiency of governance and improving the business environment. And on December 11, 2020, the IMF approved for Armenia the results of the third stage of the three-year program, thereby opening access to reserve financing - a Stand-By loan in the amount of SDR 25.714 million (almost $ 36.7 million). Within the framework of this program, a total of 231.657 million SDR (about $ 315 million) was provided to Armenia.
To recall, at the end of 2020, Armenia's gross international reserves amounted to $ 2.616 billion, foreign assets in hard currency - $ 2.607 billion, and the share of SDR in the IMF - $ 9 million. In 2020, GIS decreased by 8.2% (against growth by 26.1% in 2019), foreign assets in hard currency - by 8.3%, and the share of SDR - by 46%, against growth by 26.2% and 3.2% respectively in 2019. During 2020, the downward dynamics of the GIS was observed in January-April, then an upward trend was highlighted in May, after which the decline resumed, persisting until December. The share of SDR in the IMF also declined in the first four months, having increased sharply in May, after which the decline resumed, with a monthly moderate drawdown observed in June-November, and a sharp one in December. Foreign assets in hard currency showed an upward trend in May, August and December. The share of bank gold in the gross international reserves of Armenia was zeroed back in December 2003.
