At the end of July 2026, Armenia's international reserves reached a record high of around $6.2 billion, serving as a key indicator of the financial system's stability. According to statistical data published by the Central Bank, the country's reserves have grown by $1.1 billion, or 22%, since the beginning of the year, with these funds now being held almost entirely in foreign currency. There is no gold in the reserves at all, as the entire remaining stock of approximately 1.4 tons was sold back in 2003–2004.
Changes in the volume of international reserves are primarily influenced by public debt borrowing, debt servicing, and foreign exchange transactions carried out in the domestic market. Essentially, these reserves serve as a financial "safety cushion," which is necessary to maintain the stability of the national currency's exchange rate, repay external debt on time, and withstand potential crises.
This year, the Central Bank carried out major interventions by purchasing foreign currency, which was likely intended to prevent a sharp appreciation of the dram. Armen Nurbekyan, Deputy Governor of the Central Bank, stated in the National Assembly on June 18 that the financial institution bought around $1.1 billion during this year alone.
At the same time, Armenia's state debt, excluding the Central Bank's external debt, has already approached the $14 billion threshold.
The 22% growth in international reserves is a positive signal for the country's macroeconomic stability, especially in terms of resisting external shocks. Nevertheless, it is important to note that a significant portion of this growth was formed as a result of large foreign exchange purchases by the Central Bank aimed at curbing excessive dram appreciation.
On the other hand, alongside the record volume of reserves, the state debt continues to grow, approaching the $14 billion threshold. This means that the expansion of the financial "safety cushion" is accompanied by an increase in future obligations, which will require more efficient debt service management in the coming period.
