YEREVAN, August 31. /ARKA/. The financial agenda of Armenia last week was shaped by signals from the Central Bank regarding inflation and the transmission of monetary policy, the state of international reserves, and government debt parameters. Additional external guidance was provided by S&P Global Ratings assessments. Changes in banking regulation and asset structure continued in the domestic market, while the capital market was supplemented with new corporate bonds.
1. Monetary policy: Central Bank recorded an acceleration of inflationary pressure
The Central Bank of Armenia reported on August 28 that annual inflation accelerated from 3.9% in June 2025 to 5.1% in June 2026, and core inflation rose from 3.1% to 4.9%. Among the main factors, the regulator cited external price pressure, rising local food prices, and some expansion of domestic demand.
2. Bank interest rates: Transmission of Central Bank decisions remains gradual
The Central Bank noted that the interest rates of the banking system are slowly adjusting following the decrease in the refinancing rate and short-term market rates. Demand for loans remained high, especially in the consumer credit segment.
3. Currency market: Dram strengthened against the dollar by the end of the week
The average exchange rate of the US dollar on August 24 was 365.38 drams, and by August 28 it had decreased to 364.32 drams per dollar, while the euro rate fell from 426.22 drams to 424.36, and the ruble rate from 4.3633 drams to 4.2392 drams.
4. International reserves: The indicator reached a record $6.19 billion
As of the end of July 2026, Armenia's gross international reserves amounted to $6.1886 billion, up from $5.8962 billion the previous month, according to the Central Bank data. The indicator increased by 4.96% over the month.
5. Sovereign rating: S&P maintained a 'positive' outlook for Armenia
S&P Global Ratings confirmed the long-term and short-term sovereign ratings of the Republic of Armenia at 'BB-/B', maintaining a 'positive' outlook. Among the factors supporting the rating, the agency highlighted a predictable macroeconomic policy framework, growth prospects, and a manageable level of public debt.
6. Public debt: S&P and the Ministry of Finance assess its level as stable and manageable
S&P Global Ratings estimates that Armenia's public debt, excluding liquid assets, will remain generally stable at just above 40% of GDP in the medium term. The agency attributes the ability of the state to maintain revenue growth amid structural expenditures on defense, healthcare, and infrastructure as key fiscal factors.
7. Bank investments: The portfolio shrank to 1.93 trillion drams
The total investment portfolio of Armenian commercial banks as of the end of June amounted to 1.93 trillion drams, down 9.48% since the beginning of the year and 12.68% in the second quarter. The volume of bank investments directly in securities amounted to 1.92 trillion drams, or 13.9% of the total assets of the banking system.
8. Banking regulation: Account statements will be free
The Central Bank Council has made changes to the rules of conduct for financial organizations, allowing individuals to obtain electronic account statements for free from commercial banks.
9. Banking sector: S&P noted a high level of capitalization and profitability
S&P Global Ratings characterized the banking sector of Armenia as well-capitalized and highly profitable. The agency links the current state of the system to high net interest income and economic activity.
10. Capital market: New corporate bonds listed
ML FASHION bonds with a total nominal volume of 500 million drams have been listed on the Armenian Stock Exchange and included in the secondary Bbond list.
Weekly results
The week confirmed the stability of the financial market parameters in Armenia amid ongoing adjustments to monetary and financial conditions.
