1.1 mln USD foreign currency transaction at the Armenia Securities Exchange

Friday, 14 June 2024

Today, on June 13, a foreign exchange transaction amounting to 1.1 million US dollars occurred on the Armenia Securities Exchange’s forex platform for the first time in nearly 10 years. It should be noted that the forex platform was launched on May 2 of this year and provides a more transparent and market-based determination of the dram’s value against foreign currencies. Transactions on the platform are conducted exclusively on a pre-deposit basis and anonymously, ensuring currency risk management.

Following the platform’s launch, Hayk Yeganyan, the CEO of the Armenia Securities Exchange, met with representatives of Armenian banks and investment companies to discuss the platform’s prospects and technical capabilities.

As we know, the foreign exchange market plays a crucial role in the money market by facilitating international transactions and investments, influencing monetary policy, and providing mechanisms for managing currency risk. The activity of the foreign exchange market leads to business development within and beyond the country’s borders. It is a tool for stabilizing the country’s monetary policy and managing foreign exchange risk, keeping the national currency stable.

One of the key roles of the foreign exchange market is ensuring liquidity and price discovery. If the foreign exchange market is highly liquid and currency prices reflect real-time supply and demand conditions, it helps businesses and investors make informed decisions based on accurate currency valuations.

It should be noted that the last foreign exchange transaction on the Armenia Securities Exchange took place in 2016.