Central Bank of Armenia

Central Bank of Armenia
Company type	Autonomous institution
Industry	Central banking
Headquarters	Yerevan, Armenia
Key people	Martin Galstyan (Governor)
Products	Issuance of currency, banking supervision, management of foreign currency reserves, ownership of Armenian Mint

The Central Bank of Armenia (), based in Yerevan, serves as the nation's autonomous central banking institution. It is responsible for issuing all domestic currency notes and coins, overseeing the banking industry, managing the state's foreign currency reserves, and holding full ownership of the Armenian Mint.

As a participant in the Alliance for Financial Inclusion, the CBA plays an active role in promoting financial inclusion. On July 3, 2012, it made a formal commitment to the Maya Declaration, reinforcing efforts to expand access to financial services.

During the 2012 Global Policy Forum, the bank committed to fostering financial products within the private sector aimed at underserved groups, with a particular focus on mobile and electronic payment solutions. Additionally, it pledged to create an effective, no-cost complaint resolution mechanism via a financial mediator office and to strengthen consumer protection through enhanced regulatory measures.

The incumbent governor is Martin Galstyan.

Mission of the Central Bank

To establish itself as a reputable, transparent, independent institution grounded in expertise and aligned with global financial development trends
To sustain organizational capacity for swift adaptation to economic shifts and exert meaningful influence on economic dynamics
To contribute to Armenia’s long-term macroeconomic stability by acting as a principal government partner in confronting economic challenges

Principal Responsibilities of the Central Bank

Ensure stability within the financial sector
Oversee issuance and circulation of the national currency
Prevent money laundering and terrorism financing activities
Administer Armenia’s international reserve assets
Regulate and supervise operations governed by Armenian legislation

Governance of the CBA

The Central Bank Board stands as the top governing entity, composed of the Chairman, two Deputy Chairmen, and five additional members. The Chairman and Deputy Chairmen hold their Board positions ex officio. Appointment of the Chairman is conducted by the National Assembly based on the President’s proposal for a six-year term; Deputy Chairmen are appointed by the President for six years as well. The President also appoints Board members for five-year terms. Members are prohibited from occupying other remunerated roles within the Bank or holding leadership positions in political parties. The Chairman directs strategic goal achievement and coordinates overall Bank activities. Board members face restrictions on holding other state offices or paid employment, with exceptions granted only for scientific, teaching, or creative pursuits.

Ensuring Financial Stability

The Central Bank of Armenia is entrusted with preserving the stability of the financial system, including liquidity maintenance, solvency assurance, and ensuring proper operation of banks under Armenian law. This responsibility is fulfilled through risk evaluation and mitigation strategies, regulatory oversight, supervision of payment systems, provision as lender of last resort during crises, and managing resolution processes for troubled banking institutions.

Understanding Financial Stability

Financial stability, as defined by the Central Bank of Armenia, refers to the financial system’s capacity to absorb shocks and disturbances while maintaining adequate liquidity levels, efficient processing of transactions, and effective channeling of savings into investments. The focus lies on sustaining stability across major financial entities and markets without disregarding isolated insolvencies or asset price volatility. Achieving financial stability involves identifying critical risks, addressing deficient financial risk management practices, ensuring accurate asset valuation, and applying appropriate policy responses.

A robust financial system is fundamental to economic health. Trust in its reliability and functionality supports essential economic activities. Central banks emphasize protecting financial stability because goals such as low inflation rates, minimal unemployment, and accelerated growth rely on a well-developed and stable financial infrastructure that effectively transmits monetary policy throughout all sectors.

Tools utilized by the Central Bank to uphold financial stability

To preserve financial stability, the Central Bank applies a range of tools, including:

evaluating and analyzing risks
gathering market intelligence to improve transparency about its goals and potential threats
overseeing and advancing payment systems
conducting market operations and providing liquidity support
serving as the lender of last resort
operating through the Financial Stability Committee

The Central Bank identifies risks by tracking domestic and international financial indicators, monitoring financial institutions, assessing market infrastructure, and observing macroeconomic trends. It also employs financial soundness indicators endorsed by the IMF.

Stress-testing frameworks are used to model hypothetical scenarios, assessing vulnerabilities within the financial system or specific entities. Risk management is achieved through prudential and macroprudential policies combined with supervisory activities. Prudential regulation imposes restrictions on individual institutions to control risk exposure, whereas macroprudential regulation aims to mitigate systemic risk to ensure overall financial system resilience.

Policies implemented by the Central Bank for financial stability

Central Bank policies aimed at maintaining financial stability fall into three categories:

Preventive policy is applied when the financial system remains stable with key metrics within acceptable thresholds. This involves continuous monitoring of macroprudential indicators and evaluating the financial sector’s international exposures both quantitatively and qualitatively. Supervisory and regulatory instruments are employed to preserve stability under this approach.
Corrective policy comes into effect when fluctuations near but do not surpass established limits. This includes reviewing new financial products, refining risk assessment techniques, adjusting loan loss provisions, ensuring capital adequacy, and adopting international regulatory reforms to strengthen the framework.
Recovery policy is enacted when fluctuations exceed tolerable levels and core functions of the system are compromised. This stage involves crisis management measures such as extended Central Bank lending facilities, quantitative easing programs, and emergency liquidity provision as lender of last resort.

Financial Stability Committee

Formed in 2011, the Financial Stability Committee provides guidance on evaluating financial stability. Its responsibilities include identifying threats to stability, analyzing their transmission channels, recommending stabilization measures, and advising on policy directions. The Committee convenes quarterly and can hold special meetings called by its chairman when necessary. Its membership consists of:

Chairman: Central Bank Chairman
Deputy Chairman: Deputy Chairman of the Central Bank
Members: Leaders of departments responsible for Financial System Stability and Development, Monetary Policy, Financial Supervision, Finance, and Financial System Regulation

Financial Stability Report

Since 2007 on an annual basis—and semiannually starting in 2010—the Central Bank of Armenia issues the Financial Stability Report. This publication evaluates recent developments in both real and financial sectors that may pose risks to financial stability. It highlights principal risks and ongoing preventive initiatives to increase awareness among financial institutions, businesses, and the public about efforts to maintain stability. The report organizes risks into five categories:

Global economic trends (including macroeconomic conditions and financial markets)
Armenia’s macroeconomic environment
Developments within Armenian financial institutions
Modifications in financial infrastructure

The Central Bank is committed to continuously enhancing the report’s comprehensiveness and detail to meet international benchmarks and effectively address emerging challenges.

Ensuring a Robust, Stable, and Efficient Financial System

This strategy aims to uphold the stability and smooth functioning of Armenia's financial sector. It mandates that financial institutions and payment entities meet their obligations promptly, exercise prudent risk management, maintain transparency, and effectively absorb shocks.

1. Achievements to Date

Significant progress includes thorough risk evaluations of financial institutions and the enhancement of tools for monitoring financial stability. The quality and frequency of financial stability reports have improved, complemented by emergency simulation drills. A macro-prudential risk assessment framework was established utilizing quantitative approaches and stress testing. Concepts for crisis management and systemic bank disclosure were developed and put into practice.

A Basel III compliance framework was designed to modernize Armenia’s banking regulatory system, with risk-based supervision currently being implemented. The 2012 Financial Sector Assessment Program conducted by the World Bank and IMF acknowledged notable regulatory advancements since 2005, highlighting Armenia’s near 93% adherence to international standards.

The schedule for Solvency II adoption was approved, initiating projects such as the pilot "Non-Life Underwriting Risk Assessment Manual." The Central Bank’s Electronic Payment System (EPS) underwent a comprehensive evaluation based on Bank for International Settlements criteria, confirming its reliability and low-risk profile—findings that supported World Bank FSAP initiatives.

2. Primary Development Objectives

Establish a thorough financial stability framework for risk assessment and crisis response.
Create sustainable regulatory and supervisory systems aligned with global best practices to balance risk oversight with market evolution.
Implement reforms guided by a unified philosophy for financial system development to foster balanced growth among institutions, markets, and infrastructure while enhancing intermediation.
Advance banking regulation by adopting Basel III standards, implementing risk-based supervision, consolidated oversight, improved reporting mechanisms, and streamlined supervisory processes.
Strengthen insurance regulation through adoption of International Association of Insurance Supervisors principles and phased Solvency II implementation.
Assess the Central Depository of Armenia’s Unified Securities Registry and Settlement System against Bank for International Settlements benchmarks to enhance risk control and operational efficiency.
Review EPS modifications based on previous evaluations to ensure alignment with international risk management standards, reducing risks and improving operational effectiveness.

3. Anticipated Results and Policy Measures

Anticipated Result	Policy Measures
1. Robust systems and mechanisms for maintaining financial stability and managing crises in line with international best practices	1.1. Develop and implement methodologies to evaluate, monitor, and analyze risks specific to the financial system. 1.2. Continuously update the crisis management framework to ensure compliance with legislative and regulatory requirements. 1.3. Create quantitative instruments for assessing risks originating from external sectors and real economy through macro-prudential analysis.
2. Regulation and supervision of the financial system consistent with international standards	2.1. Analyze implications during phased implementation of Basel III Accord. 2.2. Assess impacts of gradual adoption of Solvency II framework.
3. Introduction of new financial institutions, infrastructure, tools, and services supporting sustainable development of the financial system	3.1. Develop a long-term strategy for Armenia’s financial system development covering banking, insurance, securities markets, and payment infrastructures. 3.2. Promote measures enhancing financial intermediation including remote service technologies, geographic outreach expansion, microfinance initiatives, as well as innovative non-cash, electronic, and mobile payment services.
4. Elevated standards in bank regulation and supervision	4.1. Evaluate feasibility of adopting global best practices in Armenian banking; conduct pilot testing followed by implementation. 4.2. Enhance and gradually introduce risk-based supervisory frameworks. 4.3. Test and finalize systems for collecting raw data from banks. 4.4. Enact legislation enabling consolidated supervision.
5. Improved insurance regulation and supervisory frameworks	5.1. Assess feasibility of adopting international best practices in insurance; carry out testing phases leading to implementation. 5.2. Introduce progressively a risk-based supervision model for insurance activities.
6. Alignment of CDA’s “Unified Securities Registry Maintenance and Settlement System” with Principles for Financial Market Infrastructures	6.1. Identify potential sources of systemic risks within the system. 6.2. Evaluate system compliance against international standards; initiate reforms addressing identified risks. 6.3. Conduct ongoing monitoring following evaluation outcomes.
7. Central Bank EPS compliance with Financial Market Infrastructure Principles	7.1. Implement changes according to action plans aimed at mitigating identified risks. 7.2. Perform regular follow-up monitoring of the system’s performance.

Monetary policy

The Central Bank of Armenia (CBA) functions as a state legal entity, with its primary mandate established by the Armenian Constitution and the Law on Central Bank of Armenia to maintain price stability. Beginning January 1, 2006, the CBA adopted an inflation targeting framework, employing projected inflation rates as an intermediate benchmark and adjusting interest rates as its main operational mechanism.

In accordance with the Law on State Budget, the CBA aligns its core objectives with the Government of Armenia. It submits a monetary policy program to the National Assembly that outlines strategic priorities and target indicators. This program specifies the principal directions and tools of monetary policy. Additionally, the CBA oversees foreign exchange policy matters.

The Forecasting Team at the CBA delivers quarterly projections of inflation over a 12-month horizon along with recommendations for monetary policy measures aimed at minimizing deviations from established targets. The CBA Board determines the refinancing (repo) rate on a monthly basis and sets broader monetary policy guidelines every quarter.

Effective synchronization between monetary and fiscal policies is essential. This involves harmonizing macroeconomic variables, managing liquidity levels, coordinating external financial inflows, and overseeing government Treasury bill issuance. The cooperation framework is formalized through the “Agreement on the Principles of Cooperation between the CBA and Ministry of Finance.” Both entities collaborate during the formulation and execution of medium- and short-term plans, with representatives participating in supervisory committees to ensure cohesive policy implementation.

Foreign exchange policy

The foreign exchange policy pursued by the Central Bank emphasizes reinforcing both the stability and international trustworthiness of the Armenian Dram. This is achieved by establishing a robust legal and economic foundation for current account transactions, capital movements, and foreign investment flows. The approach is supported by prudent management of national currency reserves, adoption of an appropriate exchange rate system, and comprehensive legislative backing.

Exchange Rate Regime

The Central Bank maintains a freely floating exchange rate system that complements liberalized capital account operations alongside an autonomous monetary policy. Any interventions in the foreign exchange market are conducted in line with overarching monetary policy goals. The Bank regularly publishes market-based average exchange rates for the Armenian Dram against various foreign currencies.

Pre-1918

The earliest known coinage associated with Armenia dates back to between the 6th and 5th centuries BC, featuring silver coins originating from Achaemenid Iran, Miletus, and Athens. By the 4th century BC, Armenian satraps such as Tiribazus and Orantas issued coins bearing their likenesses. During the Hellenistic period, silver coins minted under Alexander the Great were widely circulated within Armenian territories. These coins typically displayed royal portraits on their obverse sides while their reverse featured mythological imagery accompanied by Greek inscriptions.

From the late 3rd century BC onward, rulers of Sophene—like Arsham and Xerxes—began producing copper coinage, representing Armenia’s earliest documented minting activity. The Artaxiad kingdom (189 BC–1 AD) expanded coin production notably during King Tigran the Great’s reign (95–55 BC), with mints located in cities including Artashat, Tigranakert, and sites in Syria.

No surviving coins are attributed to the Arsacid dynasty period (66–428 AD); instead, currency in circulation included Roman, Parthian, Sassanid, and Byzantine issues. Following Arab conquest in the 7th century, silver dirhams from Umayyad and Abbasid caliphates circulated alongside copper fils and a limited number of gold dinars. By the late 10th century, Byzantine gold coins became predominant alongside those issued by Seljuk rulers.

During the Bagratid dynasty (885–1045), coin minting was largely absent except for a single copper coin from King Curicé II (1048–1100) of Lori—the earliest known Armenian coin bearing inscriptions in Armenian script. The Armenian State of Cilicia (1080–1375) produced diverse coin types including silver dram and tagvorin, billon pieces, copper dangs, qartez, pogh coins, as well as limited gold dahekans; these commonly featured Armenian inscriptions and crosses as key motifs. Under King Hetum I (1226–1270), bilingual coins inscribed in Armenian and Arabic were minted.

In northern and eastern Armenia during the early 13th century, Georgian copper coins along with some silver issues circulated widely. From the 1260s onward, Mongol silver dirhems and copper fils appeared in circulation followed by coinage from various Muslim Turkish dynasties.

Starting from the 16th century, coin circulation was dominated by Iranian shahs’ currency; Western European thalers became increasingly common by the 17th century. Until early 19th century annexation by Russia, Iranian coins prevailed in eastern Armenia while western regions primarily used Turkish sultans’ currency.

After incorporation into the Russian Empire in the early 1800s, imperial Russian coins and paper money were introduced throughout Armenia. Following the February Revolution of 1917, paper notes issued by Russia’s Provisional Government also circulated within Armenian territories.

Currency circulation from 1918 to 1924

Following the October Revolution of 1917, Armenia, Georgia, and Azerbaijan established the Transcaucasian Commissariat, which issued banknotes in values ranging from 1 to 250 rubles during 1918. These notes included Armenian script and are regarded as the earliest Armenian paper currency. After Armenia declared independence on May 28, 1918, the Yerevan branch of the State Bank began distributing checks, with subsequent 1919 banknotes (denominations between 50 and 250 rubles) designed by H. Kojoyan and A. Fetvajyan and produced in London, distinguished by their national motifs.

In 1921, larger denominations appeared including 10,000-ruble checks and banknotes of 5,000 and 10,000 rubles. The 1922 series expanded denominations further from 25,000 up to 5 million rubles. That same year, Armenia joined Georgia and Azerbaijan to form the Federative Union of Transcaucasian Soviet Socialist Republics (FUTSSR), which issued currency ranging from 1,000 to 10 million rubles in 1923.

By December 1922, the FUTSSR transitioned into the Transcaucasian Soviet Socialist Federative Republic, releasing banknotes with values reaching as high as 10 billion rubles; however, notes with the largest denominations were never actually circulated. Although a decree from December 1920 required Soviet Russian banknotes to be used, these were soon phased out. The April 1924 Soviet government decree standardized currency across Transcaucasia by introducing uniform Soviet banknotes.

Currency circulation during the Soviet era

In 1924, the Soviet government introduced coins in copper ranging from 1 to 5 kopecks and silver coins up to one ruble. Additionally, half-kopeck copper coins were minted between 1925 and 1928. The first Soviet gold coin—a single chervonets—was issued in 1923 but was mainly reserved for international trade rather than domestic use.

Starting in 1926, bronze replaced copper for lower denomination coins; by 1931, mid-range kopeck coins were minted using cupro-nickel alloys. Early Soviet banknotes frequently changed designs and featured ideological imagery alongside the chervonets (equivalent to ten rubles).

The monetary reform of 1947 sought to stabilize the post-war economy by withdrawing counterfeit notes and issuing new currency. Later, in 1961, a revaluation adjusted the currency at a ratio of ten to one and introduced redesigned coins (ranging from one kopeck to one ruble) as well as banknotes spanning from one to one hundred rubles.

By the year 1991, older high-value banknotes (50 and 100 rubles) were replaced with updated designs; subsequently, notes ranging from one to one thousand rubles were released. Following price liberalization in February 1992—which caused inflation and devaluation of the ruble—larger denomination notes (from fifty up to ten thousand rubles) were issued in a new series to better manage currency circulation.

Currency developments in the Republic of Armenia

On November 22, 1993, Armenia introduced its own currency—the Dram—in denominations of 10, 25, 50, 100, 200, and 500 drams at an exchange rate of two hundred rubles per Dram. Soviet banknotes valued between one and five hundred rubles remained valid until March 17, 1994. From February 21, 1994, coins of denominations including 10, 20, and 50 luma as well as one, three, five, and ten drams were issued. Banknotes of one thousand and five thousand drams followed later in late 1994 and throughout 1995.

Beginning in 1998, a second series of banknotes was introduced covering denominations from fifty up to twenty thousand drams with improved security features and design elements. On June 4, 2001, a commemorative fifty-thousand dram note was released celebrating the seventeenth centennial of Armenia’s adoption of Christianity. Between 2004 and 2005, earlier series banknotes of fifty and one hundred drams were withdrawn from circulation but remain indefinitely exchangeable at banks.

Coins from the second series ranging between ten and five hundred drams were minted between 2003 and 2004. On August 24, 2009, a new high-denomination note of one hundred thousand drams was issued featuring King Abgar V of Edessa—the first Armenian-origin monarch known for embracing Christianity. Since August 1994, the Central Bank has also produced numerous commemorative coins crafted from gold, silver, and cupronickel alloys.

20th century until 1991

At the dawn of the 20th century, Armenia witnessed an increase in capital concentration, predominantly influenced by Russian investments. Prominent Russian financial institutions extended their reach into major Transcaucasian cities, with branches from Azov-Don and Volga-Kamsk merchant banks established in Yerevan. By 1914, Yerevan hosted ten banking entities engaged in lending activities and industrial financing.

Following the 1917 October Revolution, the Transcaucasian Commissariat was formed, encompassing Armenia. After its dissolution in May 1918, Armenia declared independence, appointing Hovhannes Kajaznuni as Prime Minister and initially Sargis Araratyan, followed by Grigor Jaghetyan, as Finance Ministers.

Between 1918 and 1919, the country’s monetary framework disintegrated; the government faced severe funding challenges and resorted to issuing unsecured banknotes extensively—circulating checks worth billions of rubles—resulting in rampant inflation. By mid-1920, the currency had lost most of its value.

In August 1920, legislation introduced capital punishment for counterfeiting offenses. Efforts to establish a State Bank were unsuccessful as Bolshevik authorities nationalized all banks by December. Attempts to stabilize the currency through foreign exchange interventions failed due to public distrust; meanwhile, Transcaucasian bonds dominated commercial transactions.

Prior to the Soviet regime's establishment at the end of 1920, six banks operated within Armenia, with over eleven billion rubles in circulating checks that had significantly depreciated. The monetary system functioned without an effective state budget.

On December 28, 1920, the Yerevan branch of the Russian State Bank was transformed into the State Bank of the SSRA under Governor Vladislav Moravski; however, it ceased operations by August 1921. The institution was reactivated in March 1922 with Martin Sahakyan serving as Governor until 1924.

In April 1924, all Transcaucasian banknotes were withdrawn and replaced by Soviet currency. The Armenian branch relocated to a newly constructed building between 1930 and 1933, designed by Nikolai Bayev based on Alexander Tamanyan’s architectural plans.

Credit system reforms between 1930 and 1932 converted specialized banking institutions into long-term credit providers operating within the State Bank’s expanding branch network; branch numbers grew from seven in early 1930 to twenty-six by 1931. The State Bank separated from the People's Commissariat of Finance in 1938 but reintegrated into the Ministry of Finance in 1946, with its Governor concurrently holding the position of Deputy Finance Minister.

Throughout the Soviet period, the Armenian branch underwent several name changes: becoming the Armenian Republican Branch in 1953 and later the Armenian Republican Bank in 1987, which operated fifty-two branches. The monetary reform of 1961 replaced old banknotes at a ratio of ten to one.

A significant bank robbery took place in August 1977; however, law enforcement apprehended the perpetrators by mid-1978 and recovered most of the stolen funds.

By the late Soviet era (1987), numerous specialized banks had emerged including Ardshinbank (focused on industry and construction), Bnaksotsbank (serving household and social needs), Agroardbank (agro-industrial sector), Khnaybank (savings), and the External Bank of Economic Affairs. Beginning in 1988, all functions previously managed by State Bank branches were transferred to these specialized institutions.

The final charter of the Soviet State Bank issued in 1988 reaffirmed its position as the principal bank and coordinator of credit for the national economy.

Evolution of the CBA

Introduction of the national currency:

In 1993, the Republic of Armenia enacted the Law on “The Central Bank of the Republic of Armenia,” which transformed the National Bank into the Central Bank of the Republic of Armenia. The national currency, known as the Dram, was officially launched by the Supreme Council through Resolution No. 15 on November 19, 2003.

Establishment of monetary policy:

The Central Bank developed its inaugural monetary policy program in 1994, prioritizing a strategy aimed at reducing inflation levels.

Implementation of banking legislation:

By 1996, several crucial laws were passed to govern Armenia’s banking sector: these included legislation on the Central Bank, Banks and Banking operations, Bank Bankruptcy procedures, and Bank Secrecy regulations. Ensuring price stability became a central mission for the Central Bank, alongside creating a legal framework to support banking system recovery.

Development of national payment and settlement systems:

From 1996 through 2001, Armenia introduced key financial infrastructure such as BANKMAIL, an interbank electronic payments platform, and BOOKENTRY for government securities accounting. The SWIFT system was widely integrated to facilitate international transactions. These initiatives culminated in the establishment of ArCa (‘Armenian Card’), a comprehensive national payment and settlement system compliant with global standards.

Enhancements in banking laws and infrastructure:

Between 2002 and 2004, legislative progress included instituting deposit insurance schemes for individuals. The Central Bank also took on responsibilities related to preventing money laundering and financing terrorism. The sector’s rehabilitation concluded with strengthened capital bases across Armenian banks.

Central Bank as comprehensive regulator and guardian of financial stability:

In 2006, Armenia adopted a consolidated risk-based regulatory framework consistent with international norms. The Central Bank was empowered to supervise all entities within the financial sector, thereby becoming a megaregulator tasked with maintaining financial stability. This period also saw the promotion of corporate governance standards to boost banks’ competitiveness and improve client services.

Adoption of inflation targeting approach:

Also in 2006, the Central Bank embraced a full inflation targeting framework. With price stability as its foremost goal amid external inflation pressures, it set an annual inflation target range at 4% plus or minus 1.5% for the years 2008 to 2010.

Advancement of financial sector and institutional reforms:

From 2007 to 2011, reforms extended to non-bank financial sectors such as insurance and capital markets while enhancing infrastructure. NASDAQ OMX entered Armenia’s market, strengthening capital market functions. Consumer protection mechanisms were introduced, including establishing a financial system mediator office and mandatory third-party motor liability insurance.

The banking sector continues to dominate Armenia’s financial landscape, accounting for roughly 95% of total financial assets.

Overview of Armenian financial market as of December 31, 2014:

21 commercial banks with 509 branches plus one development bank (All-Armenian Bank), together controlling about 90% of sector assets
Total capital amounted to AMD 469 billion
Aggregate assets reached AMD 3.411 trillion
Total liabilities were AMD 2.942 trillion
Paid-up statutory fund stood at AMD 280.1 billion
Nonresident equity totaled AMD 186.4 billion
There were 32 credit organizations operating across 149 branches
The market included 8 insurance companies and 2 brokerage firms
A network of 141 pawnshops was active
Exchange offices numbered 203 (including branches)
Seven money transfer companies operated within the country
Four payment processing and clearing firms were present
Securities market participants comprised banks offering investment services (21), investment firms (8), investment fund managers (4), Armenian Central Depository, and NASDAQ OMX Armenia

Governors

Leaders of the State Bank and Central Bank

Grigory Smirnov, 1896–1901
Anton Krizhijanovsky, 1901–1905
Nikolai Sannikov, 1905–1910
Constantine Sibani, 1910–1916
Vladislav Moravski, 1916–1921
Martin Sahakyan, 1922–1924
Grigor Jaghetyan, 1924–1930
Garsan Varshamyan, 1930–1931
Hovhannes Davtyan, 1931–1936
Vardan Mamikonyan, 1936–1937
Arkady Minasyan, 1937–1939
Sergey Baturi, 1939–1943
Riza Velibekov, 1943–1944
Artashes Sargsyan, 1944–1967
Stepan Safaryan, 1967–1969
Andrey Papovyan, 1969–1972
Vladimir Aghasyan, 1972–1986
Isahak Isahakyan, 1986–1994
Bagrat Asatryan, 1994–1998
Tigran Sargsyan, 1998–2008
Arthur Javadyan, 2008–2020
Martin Galstyan, since 2020

National currency

Armenia's official currency is the dram, identified by the ISO code AMD and symbol . The dram subdivides into one hundred luma units. The Central Bank of Armenia (CBA) exclusively manages the issuance of this currency. The dram was officially launched on November 22, 1993.

The currency’s emblem, created by Karen Komendaryan and Ruben Arutchyan, received CBA approval in 2001, was nationally registered in 2007, and later incorporated into international ISO and UNICODE standards by 2012.

After Armenia gained independence in 1991, the dram was named in March 1992. Initial banknotes ranging from 10 to 500 dram were released toward the end of 1993. Additional denominations of 1,000 and 5,000 dram followed in the subsequent years of 1994 and 1995. Early banknote designs prominently featured Armenian architectural landmarks and cultural symbols, establishing a tradition that honors national heritage through currency imagery.

Between 1999 and 2010, banknote denominations spanned from 50 to as high as 100,000 dram, with smaller denominations gradually withdrawn from circulation. In recognition of Armenia’s adoption of Christianity as a state religion, a special commemorative banknote of 50,000 dram was issued in 2001 to mark the event’s 1700th anniversary. Over time, banknote designs evolved to portray notable Armenian historical personalities and incorporated up to seventeen advanced security features consistent with global standards in currency protection. Recent reissues enhanced design uniformity and introduced security elements on both faces of the notes, earning international acclaim at a Singapore-based conference in 2011.

Coin production commenced in 1994 with denominations ranging from luma up to ten dram. A second series arrived in 2003, introducing coins as large as 500 dram that replaced equivalent banknotes. Inflation rendered lower-value coins obsolete relatively quickly; however, those higher denominations were minted repeatedly over time.

Marking the dram’s silver jubilee in 2018, a third series debuted a new banknote valued at 2,000 dram alongside reissued denominations—excluding the previously highest-valued note of 100,000 dram. The initial release included the denominations of 10,000; 20,000; and 50,000 dram in November, followed by the remaining three (1,000; 2,000; and 5,000 dram) in December.

Since the mid-1990s, commemorative coins have been minted to honor significant occasions such as the Chess Olympiad and prominent cultural figures. In a modern initiative launched in 2012, circulation coins were designed to represent Armenia’s various regions and its capital Yerevan through distinctive imagery. These coins circulate alongside standard issues and are popular among collectors.

Starting in 2011, the CBA introduced "Noah's Ark" silver bullion coins available in seven different weights to promote precious metal investments among households. The program’s success is demonstrated by over one million coins sold within a single year.

Collector coins numbering more than one hundred seventy since their inception in 1994 celebrate themes including Armenian sovereignty, military heritage, culture, science, literature, Christian traditions, and biodiversity. These high-quality numismatic pieces have garnered multiple international awards for their design excellence.

This integrated strategy for currency creation reflects Armenia’s dedication to merging cultural identity with sophisticated financial instruments that adhere to worldwide standards.

CBA in Armenian Constitution

The National Assembly receives the President of Armenia’s recommendation for appointing the Chairman of the Central Bank. The Central Bank’s core mission is to maintain price stability within Armenia by formulating and executing monetary policy strategies. It holds the exclusive right to issue the national currency, the Armenian Dram, and functions autonomously under the constitutional and legal provisions.

The Chairman is selected by the National Assembly for a six-year duration, with the possibility of one consecutive renewal. Dismissal requires a majority vote in the National Assembly following a proposal from the President (Article 83.3).

Currency legislation and regulatory acts

Armenian Legislation

Armenian Law on "The Central Bank of Armenia"
Armenian Law on "Banks and Banking"
Armenian Law on "Currency Regulation and Currency Control"
Armenian Law on "Credit Organizations"
Armenian Law on "Foreign Investment"

"Armenian Civil Code"

The Law titled "The Central Bank" outlines the bank’s aims, powers, organizational framework, and governance structure. Established as a legal entity solely by the Republic of Armenia, the Central Bank prioritizes price stability through monetary policy, ensuring banking system solidity, liquidity, solvency, and an effective payment mechanism. It oversees currency issuance, currency control measures, and coordinates interactions with governmental bodies and financial institutions.

The Law on "Banks and Banking" regulates the registration, licensing, oversight, and dissolution of banks and their branches. It specifies banking operations, corporate governance standards, financial transactions, investment parameters, and prudential requirements.

The 2004 amendment to the Law on "Currency Regulation and Currency Control" refined terms such as 'resident', 'non-resident', 'current currency operations', and 'capital movements'. It requires that all financial quotations for goods and services within Armenia be denominated in Armenian Dram and defines authorities responsible for currency control.

Key legislative updates occurred during 2002–2003. The 2002 Law on "Credit Organizations" empowered the Central Bank with licensing and supervisory authority over credit institutions operating in Armenia.

Statistics

According to article 5(g) of the Law on the Central Bank of RA, the Central Bank of Armenia (CBA) is charged with gathering, assembling, and disseminating monetary and financial statistics to support its mandate. Its principal responsibilities include:

Acquiring precise monetary and financial data;
Delivering dependable and prompt information to stakeholders through statistical reports and via the CBA’s official website.

Since 2011, the CBA has overseen external sector statistics such as balance of payments, international investment position, and external debt. Additionally, it collects data concerning Real, External, and Government sectors for internal purposes, complementing the National Statistical Service of RA (NSSA), which holds official authority over these sectors.

The CBA undertakes statistical evaluations across all four economic sectors—employing techniques like time series smoothing, forecasting models, index computations—and participates in developing methodologies aligned with global standards. It conducts surveys to assess business expectations regarding growth and inflation trends, enterprise price formation processes, banks’ macroeconomic forecasts, as well as household foreign currency holdings.

Statistical releases are available through the CBA website and include:

The Central Bank Bulletin (monthly)
The Central Bank Statistical Bulletin (annual)

A notable milestone was Armenia’s accession in 2003 to the IMF’s Special Data Dissemination Standard (SDDS), positioning it as the third country within the CIS region and 54th worldwide to implement harmonized statistical protocols.

The Statistics Department of the CBA coordinates these activities via divisions specializing in Monetary and Financial Statistics, Data Processing, Economic Statistics Development, External Sector Statistics, and Credit Registry management.

Collaboration with Global Financial Institutions

The Central Bank of Armenia (CBA) maintains active partnerships with prominent international financial entities such as the International Monetary Fund (IMF), World Bank, European Bank for Reconstruction and Development, and Asian Development Bank. These alliances have facilitated the CBA's execution of credit initiatives aimed at supporting systemic reforms, managing the balance of payments, financing private sector development, enhancing institutional capacity, and providing rehabilitation loans.

Through these effective collaborations, the CBA has gained access to opportunities for cooperative projects alongside leading global economic organizations and major banking institutions.

Autonomy

The Central Bank is exclusively established by the Republic of Armenia and functions autonomously from government bodies in determining its policy objectives and instruments. This autonomy guarantees the efficient application of strategies designed to uphold price stability and financial soundness, thereby fostering enduring economic growth over time.

External links