ArmInfo. Armenia's gross international reserves (GIR) since October have fallen from their historical high of $4.2 billion in the previous two months. Thus, the GIR having decreased by 8.5% or $353 million in October 2023 (versus a 3% decline in October 2022), amounted to $3.813 billion. In parallel with this, a y-o-y growth slowed down - from 13.5% to 5% (or by $179.7 million in October 2023 compared to October 2022).
The dynamics of GIR over the 10 months of 2023 also worsened, turning towards a 7.3% decline from 12.5% growth over the 10 months of 2022, or in absolute terms, decreasing by $299 million, according to the data from the Central Bank of the Republic of Armenia.
In particular, in October 2023, the GIR's reduction was due to a decline in external assets in hard currency by 9.7% to $3.761 billion, with a 85-fold sharp increase in the share of SDR in the IMF -up to $51.2 million, while a year earlier there was a 3% growth of the first one with a meager 0.9% growth of the second one. It is appropriate to note that due to the recession in October, external assets in hard currency moved down from their historical maximum, and the share of SDR in the IMF is too far from the August 2021 record level of $178.2 million.
In January-October 2023, similar to the dynamics of the IMF, the trend of external assets in hard currency worsened, turning towards an 8.4% decline from 13% growth over 10 months of 2022, and the share of SDR in the IMF, on the contrary, increased sharply-8.3-fold, recovering from last year's 42% decline.
On y-o-y terms (October 2023 to October 2022), the upward dynamics of external assets in hard currency remained, but the pace slowed down from 15.2% to 4.1%, in parallel with which there was a by almost 3- fold increase the share of SDR in the IMF, recovering from 70% recession.
During 10 months of 2023, a decline in GIR and external assets in hard currency was observed in January- February and April, after which GIR and external assets in hard currency began to grow monthly, reaching a new record level in August-September, but there was a downward trend from October. And the share of SDR in the IMF showed growth in January (5-fold), July (5-fold), and October (85-fold).
By the end of 2022, Armenia's gross international reserves (GIR) reached a record level of $4.112 billion, which was then slightly exceeded in 2023 in July and much more noticeably in August. In 2022, GIR increased by 27.3% or $881.8 million (versus 23.5% growth in 2021). Within the GIR, external assets in hard currency also reached a record level of $4.108 billion, accelerating in growth from 22.7% to 28.5%, which then reached a new historical maximum in August 2023. At the same time, the share of SDR in the IMF dropped to $6.2 million, with a reversal of the y-o-y dynamics from an 3.7-fold increase towards a decline of 81.3%, thereby moving further away from the record level of August 2021 of $178.2 million. The share of bank gold in the GIR of Armenia reset back in December 2003.
Let us recall that on December 12, 2022, the IMF Council approved a three-year Stand-By Arrangement (SBA) agreement for Armenia in the amount of SDR 128.8 million (about $171.1 million) in order to maintain macroeconomic stability, hedge against negative risks and support the structural reform program
On December 12, 2022, the Executive Board of the International Monetary Fund (IMF) approved SDR 128.8 million (about US$171.1 million) 36-Month Stand-By Arrangement (SBA) for Armenia to help maintain macroeconomic stability, provide insurance against downside risks, and support structural reform agenda. Upon the Board's approval, an amount equivalent to SDR 18.40 million (about US$24.4 million) becomes immediately available to Armenia, and the remaining amount will be made available, subject to six semi- annual reviews.
On June 12, 2023, the IMF Board completed its review of the first review under the SBA standby agreement with Armenia, which resulted in access to SDR 18.4 million (about $24.5 million), bringing the total access amount to SDR 36.8 million (about $49 million). ). Later, on November 7, 2023, the IMF Board completed its review of the second review under the SBA standby agreement with Armenia. Based on the results of this review, a meeting planned in mid-December 2023 will consider granting Armenia access to 18.4 million SDR (about $24.3 million), resulting in a total access amount of 55.2 million SDR (about $72.9 million).
