Armenia Central Bank Maintains Stability Amid Regional Volatility

The Central Bank of Armenia has maintained monetary stability despite regional geopolitical volatility, keeping inflation near target levels while preserving currency stability and adequate foreign exchange reserves.

The Armenian dram exhibited resilience against major currencies, supported by continued foreign exchange inflows from diaspora remittances, technology sector exports, and tourism revenues. Central bank interventions remained limited, reflecting underlying balance of payments strength.

Inflation moderated toward the 4 percent target following global commodity price stabilization and effective monetary policy transmission. Interest rates were adjusted gradually in response to evolving economic conditions while maintaining financial sector stability.

Banking sector health indicators remained positive, with adequate capitalization, improving asset quality, and sustained profitability across the system. Regulatory oversight maintained prudential standards while encouraging responsible credit growth.

The regulatory sandbox for fintech innovation continued attracting investment, with over $90 million directed toward financial technology startups developing payments, lending, and wealth management solutions. Armenia's fintech sector growth rate of 25 percent annually reflects the supportive regulatory environment.