ArmInfo. Events surrounding Iran have impacted the country risk premium dynamics in Armenia, pushing it upward by 20 basis points, while over the past year, the risk premium has decreased significantly by 100 basis points, as stated by Martin Galstyan, Chairman of the Central Bank of Armenia, during a press conference on March 17.
However, as he pointed out, the growth of Armenia's country risk premium has significantly lagged behind the rates recorded in other countries, and not only in the region.
"This gives us reason to believe that, in any case, investor confidence in our macroeconomic policy is quite high," the head of the Central Bank of Armenia said. According to him, everything is currently evolving dynamically, changing hourly, and the Central Bank is closely monitoring developments. "If things unfold as expected and risk premiums rise sharply, the Central Bank will have to respond by tightening monetary conditions," he stated.
Recall, the Board of the Central Bank of Armenia, at its meeting on March 17, decided to leave the refinancing rate unchanged at 6.5%, following its December 2025 reduction from 6.75%. Inflation in Armenia increased to 4.3% in February 2026 compared to February 2025 (from 2.5% in February 2025 compared to February 2024). The Central Bank's annual inflation rate for February also increased to 4.7% (from 1.5% a year earlier during the same period).
According to the Central Bank, the weakening security risks surrounding Armenia and expectations for their further improvement are reflected in actual investor valuations and in the upgrade of Armenia's country rating outlook by rating agencies (from stable to positive - Ed.). The improved sentiment towards Armenia is further confirmed by a significant increase in capital inflows in recent quarters, as evidenced by investments in treasury notes.
