Armen Hovhannisyan

Central Bank of Armenia

The Central Bank of Armenia (the CBA) is a legal entity empowered with state functions. Primary goal of the CBA is price stability in the Republic of Armenia. 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 and target (intermediate and operational) 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. 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 CBA, 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.