Central Bank to Use Its Tools if Necessary

The Central Bank of Armenia is monitoring the financial markets and will carry out operations in the foreign exchange market if necessary, according to a statement from the Central Bank.

"In order to ensure the normal functioning of the financial markets, the Central Bank of Armenia will conduct operations in the foreign exchange market. The Central Bank continues to monitor the financial markets and will use all available tools in its toolkit if necessary, ensuring price and financial stability," the statement reads.

It is noteworthy that there have been significant fluctuations in the foreign exchange market over the past few days, with the dram considerably depreciating against the dollar and euro.

Since February, the Central Bank has been purchasing dollars from the financial market of Armenia each month. Initially, these purchases were made in small volumes (relative to market scales), but they have since begun to increase. In February, $40 million was bought, over $200 million in May, and $230 million in July. Theoretically, the Central Bank could now inject dollars into the market, but this is only a supposition, and the decision will be based on market analysis conducted by the Central Bank.