MONETARY POLICY
Objective
The Central Bank of Armenia (the CBA) is a legal entity empowered with state functions. The primary goal of the CBA is prices stability, pursuant to the Constitution of Armenia, Article 83.3 and Law on Central Bank of Armenia, Article 4. Since July 1 2006, the CBA has been exercising an inflation targeting strategy which lays down that the forecast level of inflation is an intermediate goal and the interest is an operational
goal.
The CBA 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 CBA itself decides on the strategy of monetary policy it implements, as well as intermediate and operational target indicators that are contained in the monetary policy program and subject to presentation to the National Assembly. The program outlines the main directions of the monetary policy and the monetary instruments which the CBA uses in order to fulfill its objectives. The CBA also conducts a foreign exchange policy (