Armenian Government Introduces New Currency Regulations

Yerevan, Armenia - The Armenian government has announced a new set of regulations aimed at strengthening the country’s currency control and promoting foreign investment.

New Regulations for Foreign Currency Transactions

According to Article 7 of the new law:

• Residents and non-residents have the right to purchase and sell foreign currency without limitations, as long as they comply with certain requirements.
• Foreign currency transactions can be performed through specialized entities, which will determine the exchange rate and value of the transactions.

Requirements for Payment Transactions

The law also states that:

• Payments against current currency transactions, capital movement, and financial currency transactions must be performed in Armenian currency, except for cases specified in the article.
• Non-cash payments can be made in foreign currency between legal entities, sole entrepreneurs, and other entities specified in the article.

Exceptions and Authorizations

The law allows:

• International organizations to pay labor services in foreign currency, as agreed with the Central Bank and Government Authorized body.
• Banks, credit organizations, and settlement organizations to perform financial transactions in foreign currency, except for cases specified by law.

Official Exchange Rate and Documentation

The Central Bank will set the official Armenian dram/foreign currency exchange rate, and specialized entities must provide customers with a document verifying foreign currency purchase/sale operations (receipt).

Currency Control and Liability

The law introduces new measures to ensure compliance with currency regulations:

• The Central Bank will control compliance of specialized entities with requirements of the law and respective regulations on-site and off-site.
• Government authorized bodies will control compliance of other entities, while public finance management authority will monitor compliance of entities licensed by them.

For violations of currency laws and regulations, the law provides for penalties ranging from 50- to 500-fold of the minimum salary. Public finance management authority will apply liability measures to entities licensed by them, while residents and non-resident entities not specified in the article will be subject to Armenian laws on administrative violations.

Transitional Provisions

The new law will enter into effect six months after its official publication, replacing the existing Armenian law “On currency regulation and currency control” adopted in 1993.

This move is expected to promote foreign investment and strengthen Armenia’s economy. The government has emphasized the importance of maintaining a stable and transparent financial system to attract foreign investors and promote economic growth.