Armenia`s gross international reserves $3.3bln by end of 1st quarter  2024

ArmInfo.Armenia's gross international reserves (GIR), after reaching a record $4.220 billion in August 2023, then began to decline monthly, amounting to $3.304 billion by April 1, 2024. On an annual basis, this figure decreased by 11.3% (or by $420.4 million), in while in 2023, annual growth of 26.7% (or $784 million) was recorded, according to the data by the Central Bank of the Republic of Armenia.

In particular, the annual decline in GIR in March 2024 was due to a  reduction in external assets in hard currency by 11% to $3.294  billion, with a decline in the share of SDR in the IMF by 56.4% to  $9.5 million, while a year ago there was an increase in the former by  28. 2% and a decline in the second by 57.7%. Note that the record  level of external assets in hard currency was recorded in August 2023  - $4.217 billion, and the historical maximum of the SDR share in the  IMF was in August 2021 - $178.2 million.

In the first quarter of 2024, GIR decreased by 8.3% (or by $298  million), repeating the dynamics of a year ago, when a decline of  9.4% (or by $387.5 million) was recorded. This was accompanied by a  slowdown in the decline in external assets in hard currency from 9.8%  to 8.5%, while the growth of the SDR share in the IMF accelerated  from 3.5 times to 18 times. In March 2024 alone, the decline in GIR  slowed from 5.4% to 2.3%, due to the slowdown in the decline in  external assets in hard currency from 4.3% to 2.1% and the slowdown  in the decline in the SDR share in the IMF from 74% to 37%. A year  earlier, in March 2023, the dynamics of gross domestic product  improved with an exit from a 4% decline to 5.1% growth, similar to  the trend of external assets in hard currency - an exit from a 3.7%  decline to 5.1% growth, with strong braking, the share of SDR in the  IMF declines from 26.1% to 4.1%.

Armenia's gross international reserves (GIR) for 2023 decreased by  12.4% or $510 million, amounting to $3.602 billion, while in 2022 an  increase of 27.3% or $882 million was recorded - up to $4.112 billion  In particular, external assets in hard currency decreased by 12.3% to  $3.601 billion, with a decline in the share of SDR in the IMF by 92%  to $0.5 million, while in 2022 there was an increase in the former by  28.4% and a decline in the latter by 28.4%. 81.3%. It is appropriate  to note that for 2023, both GIR and external assets in hard currency  reached a new record level in August - $4.220 billion and $4.217  billion, respectively, and the historical maximum for the SDR share  in the IMF was recorded two years earlier - $178.2 million in August  2021. The share of bank gold in Armenia's geological resources was  reset to zero back in December 2003.

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. From this moment on, an amount equivalent to 18.4  million SDR (about $24.4 million) immediately became available to  Armenia. 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 audit, the IMF Council, at a  meeting on December 11, 2023, decided to open Armenia's access to  18.4 million SDR (about $24.4 million), resulting in a total access  amount of 55.2 million SDR (about $73.3 million).