YEREVAN (Arka)—Money transfers from Russia to Armenia have dwindled amid economic recession in Russia and slow growth in the region, Teresa Daban Sanchez, the International Monetary Fund Resident Representative in Armenia, said on Friday.
According to the Central Bank of Armenia, transfers from Russia to Armenia totaled about $145.7 million in September 2014 after shrinking 7 percent, compared with September 2013, and 9.8 percent, compared with the previous month.
Sanchez told journalists that Russian transfers that are very important to Armenia’s economy significantly dwindled this year because of economic issues across the world and a devaluation of Russia’s national currency.
Sanchez said the fact that the Russian ruble has plummeted gives grounds for concern. Unlike the Russian national currency, the Armenian dram’s exchange rate remains stable despite volatility in Russia’s foreign exchange market, inflation, and low outlooks for economic growth.
The IMF representative said Armenia’s economy is highly dollarized, therefore fluctuations in exchange rates strike hard at the country’s people, but this time the Armenian dram stood firm.
The Central Bank of Armenia says over $185.7 million came to Armenia through banks as individual noncommercial money transfers in Sept. 2014 — a 5 percent year-on-year decline. Transfers from Russia dominated the total inflow with 85.8 percent. That is why the reduction of Russian transfers to Armenia has a significant impact.