ArmInfo.Armenia currently maintains a very strong position in terms of economic attractiveness, as stated Martin Galstyan, Chairman of the Central Bank of Armenia (CBA), during a parliamentary session on June 16. In response to inquiries from deputies, he highlighted the significant inflow of capital into the country.
"There are many international investors willing to invest in both the government bond market and business projects. Against the backdrop of these capital and financial account inflows, we are observing an excess of foreign currency supply over demand, which naturally leads to a decline in the exchange rate," Galstyan clarified when asked about the current currency trends. The Central Bank Governor reiterated that the regulator adheres to a floating exchange rate policy, noting that the future outlook depends on the volume of incoming financial flows.
"If our exports were to decline significantly while imports remain at their current levels—and if this were not offset by financial inflows—we might see certain shifts. However, there are many other potential development scenarios, and it is difficult to predict in which direction the exchange rate might move if they were to materialize. Everything will depend on the economic processes at play," Galstyan emphasized. He noted that the Central Bank generally avoids intervening in the market, consistent with its policy of a freely floating exchange rate.
