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MONETARY POLICY
Foreign Exchange Policy
| The currency policy of the Central Bank is aimed at enhancing the reliability and international credibility of the Armenian Dram and creating a legal and economic framework for currency operations, flow of the Capital Account and foreign investment, by way of an effective management of currency reserves of the Republic of Armenia. To this end, an appropriate currency regime has been adopted, principles of operation of the currency policy have been developed and a scope of legislative framework has been set. |
| Currency regime |
The Central Bank is conducting a freely floating exchange rate policy which is consistent with the principles of liberalized capital account operations and implementation of an independent monetary policy. The Central Bank's intervention in the currency market is carried out based on the goals of the monetary policy. The Central Bank determines the Armenian Dram's official (reference) rate of exchange vis-à-vis foreign currency based on the exchange rates in the market.
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| Description of the Currency Regulation Framework |
The currency regulation framework involves terms and conditions for entering into currency operations; events, terms and conditions for disposing, holding and using currency values; and other relations arising out of currency regulation and control in the Republic of Armenia. |
| In the Republic of Armenia, the quotation of money for sale of goods/property and rendering services and works is in the Armenian Dram. |
| In the Republic of Armenia, the payment of money (including payment of interest on financial operations) for sale of goods/property and rendering services and works and use of property by and between residents is in the Armenian Dram. |
| In the Republic of Armenia, money investment in statutory fund and equity of legal entities is in the Armenian Dram. |
| In the Republic of Armenia, money prize and winnings can be advertised and delivered only in the Armenian Dram. |
| Both, the Armenian residents and non-residents can implement foreign exchange purchase and sale operations in the domestic currency market, without any restrictions, and using preferred and agreed rates, through the Central Bank and the parties licensed by the Central Bank, i.e. through banks, credit organizations, currency dealers, exchange offices and foreign banks' branches offices operating in the Republic of Armenia. |
| The operations of the Armenian payment system and implementation of currency operations connected with the service of customers by the Armenian banks are liberalized. The Armenian banks, their branch offices and branch offices of non-resident banks may service all types of internationally accepted accounts. Similarly, residents may open internationally accepted accounts with foreign banks. |
| There are no restrictions in importing cash foreign currency and securities expressed in foreign currency. Exporting securities expressed in foreign currency and up to 5 million cash Armenian Dram or equivalent foreign currency, in terms of bank notes, treasury bills and coins, from the Republic of Armenia, without any document, is allowed. Where the said limit is exceeded, exporting will be on a non-cash basis, by way of bank transfers. |
| The Capital Account operations, i.e. direct and portfolio investments, transfers of payment for property ownership and other rights, operations by long-term (over 180 days) financial instruments, are also liberalized. The Central Bank may, however, determine other terms and conditions for the flow of the Capital Account and currency operations in the context of an unstable financial system, and in the event of combating against the circulation of criminally obtained proceeds and the funding of terrorism, or preventing the emergence of statistical or economic risks. |
| The IMF Membership |
The Republic of Armenia joined the IMF in May 29, 1997 by adopting the obligations under sections 1, 3, and 4 of Article VIII of the Agreement, whereby Armenia assures the international community that it will conduct a reliable economic policy supporting the development of a multilateral payments system, free of restrictions. |
| Currency Legislation and Regulatory Acts |
Armenian Laws
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