ArmInfo. Armenia's gross international reserves in December 2021 compared to December 2020 increased by 33% or by $ 748.5 million (against a 4.1% decline a year earlier and a pre-COVID 14% decline), exceeding $ 3.026 billion. In the structure of gross international reserves, foreign assets in hard currencies dominate - $ 2.966 billion, and the share of SDR in the IMF accounts for $ 59.9 million.
According to the report of the Central Bank of Armenia, foreign assets in hard currency changed the y-o-y dynamics from the 5.3% decline to 32.3% growth, and the share of SDR in the IMF slowed down growth from 5-fold to 69.4%, against the pre-COVID decline of the first one by 15.1% and a 4.5-fold increase of the second one.
In November 2021 alone, the gross international reserves decreased by 5.5% (or $ 175.2 million) from the October 0.3% growth. This was accompanied by a reversal of the trend in the share of SDR in the IMF towards a decline of 5.9% from an insignificant growth of 0.001% in October, with a deterioration in the dynamics of foreign assets in hard currency from 0.3% growth to 5.4% decline. A year earlier, in November 2020, the gross international reserves trend was also downward (1.6%), due to a similar decline in foreign assets in hard currency (1.6%) with a 7.4% decline in the share of SDR in the IMF, which was also observed in the pre-COVID period of November 2019 (3.8-14.4%).
In January-November 2021, Armenia's gross international reserves increased by 15.7% or by $ 410.7 million (against a decline of 20.1% in 11 months of 2020 and a pre-COVID growth of 5.1% in 11 months of 2019). In their structure, foreign assets in hard currency increased by 13.8% (against a 21.1% decline in 11 months of 2020 and a pre-COVID 5.1% growth in 11 months of 2019), and the share of SDR in the IMF increased 6.7-fold (against an 5.7-fold increase for 11 months of 2020 and 18.3% growth for 11 months of 2019).
During 11 months of 2021, the decrease in the gross international reserves was observed in March-April, July, September and November. The decline in foreign assets in hard currency was also recorded in March- April, July-August and November. And the share of SDR in the IMF showed growth in April and August alone, and in both cases the increase was significant.
On December 17, 2021, the Executive Board of the International Monetary Fund (IMF) approved the provision of 51.43 million SDR (about $ 72 million) to Armenia under the Stand-By Arrangement (SBA). As a result of attracting this amount by the Armenian authorities, the total amount of deductions will amount to SDR 283.09 million (about $ 396 million). Moreover, Armenia's three-year SBA of SDR 308.8 million (about US$ 432 million), equivalent to 239.75 percent of Armenia's quota in the IMF, was approved by the IMF's Board on May 17, 2019 and augmented on May 18, 2020. The Fund's financial support will help Armenia meet its challenges-including the social and economic implications of COVID-19 pandemic-while moving ahead with its reform agenda. Going forward, the economic outlook is generally positive with medium-term growth projected around 4< - 5 percent, contingent upon the COVID-19 developments, external demand, and progress on structural reforms implementation.
Prior to that, 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. 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.
It should be noted, 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.
