THE EFFECTIVENESS OF CURRENCY MARKET REGULATION IN ARMENIA IN THE CONTEXT OF EXTERNAL CHALLENGES

Abstract

In the contemporary context of globalization, the intricate execution of monetary policy is significantly influenced by the ongoing developments within the global economy. In the current wave of developments, the global economic market has undergone structural changes due to the negative consequences of COVID-19, the Russian-Ukrainian conflict, disruptions caused by regional instabilities, and shifts that have impacted the natural progression of global economies. These changes have significantly influenced the fundamental trajectory of economic growth across countries. Despite its own domestic challenges, the Republic of Armenia, is unable to remain immune to these multifaceted alterations. Moreover, internal issues further exacerbate the situation. Consequently, the imperative for astute economic governance has grown even more pronounced. Through a comprehensive analysis of international experience in the implementation of monetary policy, shocks in the global foreign exchange market, the authors sought to fully understand and endorse the current problems facing the Republic of Armenia economy in the context of the development of the Republic of Armenia foreign exchange market. The objective was to explore various forms of applied monetary policy, external influences, economic indicators of Armenia, the structure and dynamics of debt and foreign exchange reserves, inflation levels, reasons for the appreciation of the dram currency against foreign currencies, foreign trade turnover, and substantiate the effectiveness of the ongoing currency policy in our country.