Central Bank of Republic of Armenia

The Central Bank of the Republic of Armenia is a legal entity empowered with state functions. The primary goal of the CB is price stability in the Republic of Armenia.

The CB coordinates the primary goal with the Government of Armenia, as stipulated by the Armenian Law on State Budget, and approved by the National Assembly of Armenia.

The CB itself defines the strategy of monetary policy it implements and target (intermediate and operational) indicators that are contained in the monetary policy program and subject to presentation to the RA National Assembly. The program outlines the main directions of the monetary policy and the monetary instruments which the CBA uses to fulfill its objectives.

Since 1 July 2006, the CB has been exercising an inflation targeting strategy.

Coordination of monetary and fiscal policies is priority in developing and implementing the monetary policy. The coordination involves both opting for basic macroeconomic indicators and issues relating to short-term adjustment of liquidity by the CB, disbursement of external financial inflows and issuance and allocation of T-bills by the Government. The CBA makes sure its activities are maximally transparent and open to public, which serve the best warrant for the general public’s confidence in the monetary policy implemented by the CBA.

CB key objectives are:

a) Provision of stability and normal activity of the financial system of Armenia; provision of necessary conditions for stability, liquidity, solvency and normal activity of the banking system of Armenia;

b) creation and development of an efficient payment and account system;

c) issuing of national currency, organization and regulation of money turnover;

d) organization and coordination of the fight against financing of terrorism and legalization of criminal incomes;

e) provision of necessary conditions for defending the interests of investors on the securities market, formation and support of a fair price formation system on the securities market.