Central Bank President: 'We Can Afford to Cheapen Money' Regarding Possible Currency Devaluation

The reduction of the refinancing rate by 0.25 percentage points in Armenia may also impact the currency, leading to its devaluation. This statement was made today by the President of the Central Bank of Armenia, Martin Galstyan, during a meeting with journalists.

“Thanks to the work we have done in the past, we can afford to cheapen money today, and one of the side effects could be, for example, a change in the exchange rate,” said the Central Bank president.

Galstyan reiterated that the Central Bank is guided by the mandate of price stability, and their target is to maintain a 4% inflation rate.

According to the Central Bank president, the flow of transfers to Armenia has significantly decreased over the past one to two years, primarily due to events occurring in Russia. In contrast, Galstyan noted a remarkable phenomenon in the labor market; the influx of migrants from India is progressively increasing.

“This kind of flow didn’t exist before; it is a phenomenon of the last few years. This will create an interesting situation where there will also be some monetary outflow from Armenia to those countries from which these people come as laborers, as they believe that Armenia is a suitable environment for living and working,” he emphasized.

Regarding the volumes of re-exports, the Central Bank president found it difficult to specify any particular figures, only mentioning that the volumes of re-export have significantly decreased this year.

Another positive trend that Galstyan identified was the inflow of quality specialists into the IT sector, which has changed the working environment in that industry, including approaches, culture, and efficiency.

In the construction sector, which has a significant impact on economic growth indicators, the Central Bank, together with the Armenian government, aims to shift from quantitative economic growth to qualitative, environmentally friendly construction.

It is worth recalling that on August 1, the Deputy President of the Central Bank, Armen Nurbekyan, announced that pressures for the appreciation of the Armenian dram continue.