Inflation in Armenia currently stands at 4.3%, Central Bank Governor Martin Galstyan said during a meeting of the National Assembly’s Standing Committee on Financial-Credit and Budgetary Affairs.
He added that inflation remains at a manageable level, Factor.am reports.
Galstyan noted that monetary policy decisions adopted by the Central Bank Board are aimed at stabilizing inflation over the medium term and bringing it closer to the established target.
The Central Bank governor also addressed the appreciation of the Armenian dram, emphasizing that the regulator does not issue exchange rate forecasts, regardless of economic conditions.
He explained that fluctuations in the national currency’s exchange rate are determined by the balance of supply and demand in the foreign exchange market.
“The dram’s appreciation results from the balance between supply and demand. Since the inflow of U.S. dollars into Armenia exceeds demand for them, the dram naturally appreciates,” he said.
Galstyan also reported that the Central Bank had carried out substantial foreign exchange interventions over the past year.
However, he stressed that these operations are not intended to establish a particular exchange rate for the dram or maintain it at a fixed level.
According to Galstyan, foreign exchange interventions are conducted exclusively to address temporary imbalances between supply and demand and mitigate the impact of sharp short-term exchange rate fluctuations.
