CBA CONFIRMS MONETARY POLICY PROGRAM FOR 2010 FIRST QUARTER

PanARMENIAN.Net
03.02.2010 19:13 GMT+04:00

/PanARMENIAN.Net/ CBA board confirmed monetary policy program for
the first quarter of 2010 Wednesday, February 10, the bank’s press
service reported.

The Central Bank of the Republic of Armenia is a legal entity empowered
with state functions.

The primary goal of the CB is price stability in the Republic of
Armenia.

The CB 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 CB itself defines 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 RA
National Assembly. The program outlines the main directions of the
monetary policy and the monetary instruments which the CBA uses to
fulfill its objectives.

Since 1 July 2006, the CB has been exercising an inflation targeting
strategy.

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 CB, 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.

CB key objectives are: Provision of stability and normal activity of
the financial system of Armenia; provision of necessary conditions
for stability, liquidity, solvency and normal activity of the banking
system of Armenia; creation and development of an efficient payment
and account system; issuing of national currency, organization and
regulation of money turnover; organization and coordination of the
fight against financing of terrorism and legalization of criminal
incomes; provision of necessary conditions for defending the interests
of investors on the securities market, formation and support of a
fair price formation system on the securities market.