Armenia`s gross international reserves 5.8% down by Nov 2024

ArmInfo. Armenia's gross  international reserves (GIR) decreased by 5.8% per annum or $222.1  million to $3.591 billion by November 2024, while a year ago an  increase of 5% or $179.7 million was recorded. Thus, GIR continues to  move away from the historical maximum of $4.2 billion recorded in  August 2023. This is evidenced by data from the Central Bank of the  Republic of Armenia. 

Of these, the lion's share - $3.581 billion - falls on external  assets in foreign currency, and the share of SDR in the IMF amounted  to $9.1 million. According to the regulator's report, on an annual  basis (October 2024 to October 2023), external assets in foreign  currency decreased by 4.8%, and the share of SDR in the IMF - by  82.2%, while a year earlier there was an increase in external assets  in foreign currency by 4.1% and a significant increase in the share  of SDR in the IMF by 2.7 times. 

Over 10 months of 2024, GMR decreased slightly - by 0.3% or by $11.2  million (against a decline of 7.3% or by $299 million over 10 months  of 2023). This was triggered by a 0.6% decline in foreign assets in  hard currency, while the share of SDR in the IMF jumped 18 times. A  year earlier, over 10 months of 2023, the dynamics of the components  of the GMR were also mixed, and then there was a decline in assets in  hard currency by 8.4% and an 8.3-fold increase in the share of SDR in  the IMF.

On a monthly basis, a decline in the GMR was recorded in January-May  (11%), after which growth began in June (12% for June-August), but  already in September the dynamics again turned towards a decline  (1%), with a meager 0.5% growth in October. It should be noted that  Armenia's gross international reserves (GIR) decreased by 12.4% or  $510 million in 2023, amounting to $3.602 billion, while in 2022  there was an increase of 27.3% or $882 million, to $4.112 billion.

In particular, external assets in foreign currency decreased by 12.3%  to $3.601 billion, with a 92% decline in the share of SDR in the IMF  to $0.5 million, while in 2022 there was an increase of 28.4% in the  former and a decline of 81.3% in the latter. It is worth noting that  for 2023, both the GMR and external assets in foreign currency  reached a new record level in August - $4.220 billion and $4.217  billion, respectively, and the historical maximum of 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 GMR was reset to zero back  in December 2003.

In October 2024, the IMF, following an additional virtual discussion  on the fourth review of Armenia's Stand-By Arrangement (SBA),  announced that it would make available SDR 18.4 million (about $24.5  million), bringing total access to SDR 92 million (about $122.7  million). The funds will be used to cover Armenia's 2024 budget  deficit. The SBA agreement for the fourth review is subject to  approval by the IMF Executive Board, which is scheduled to consider  the review in mid-December.