Republic of Armenia: Selected Issues Paper
IMF Staff Country Reports, March 11, 2015
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- Canonical URL
- Republic of Armenia: Selected Issues Paper
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Bibliographic details
- Published: March 11, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498387996.002
Summary
- Analyzes scope for further de-dollarization policies in Armenia.
- Notes that high financial dollarization makes Armenia more vulnerable to external shocks and limits its capacity to respond.
- States the de-dollarization strategy is broad and comprehensive and has achieved a reduction of deposit dollarization during the past few years.
- Concludes that international experience suggests further reductions in dollarization are likely to occur only gradually.
Key findings
- High financial dollarization increases vulnerability to external shocks and constrains policy response.
- The existing de-dollarization strategy has already achieved a reduction of deposit dollarization in recent years.
- Further reductions in dollarization are likely to be gradual based on international experience.
Policy recommendations
- Reduce inflation volatility and external imbalances.
- Use prudential regulations to increase foreign currency liquidity in the banking system.
- Strengthen the monitoring of currency mismatches.
Thematic focus and keywords
- Subject areas: Dollarization, Expenditure, Fiscal multipliers, Fiscal policy, Foreign exchange, Monetary policy, Reserve requirements.
- Keywords: Armenia, CR, credit dollarization, Dollarization, dollarization strategy, expenditure measure, Fiscal multipliers, Global, government expenditure, government spending, ISCR, Reserve requirements.
Republic of Armenia: Selected Issues Paper, March 11, 2015.
Content in this bundle
- Republic Of Armenia: Selected Issues; IMF Country Report No. 15/66; December 5, 2014