YEREVAN, August 30. /ARKA/. Armenia’s gross international reserves totaled $1 566.4 million in late June 2016 after shrinking 3.7% or by $59.9 million over the second quarter, the Central Bank of Armenia says in its preliminary report.

Gross external assets in freely convertible currencies amounted to $1 560.7 million.

SDR in the International Monetary Fund amounted to $5.7 million in late June.

According to the regulator, the reduction of gross international reserves was due to the servicing of the foreign debt that amounts to $46 million and the contraction in commercial banks’ correspondent accounts amounting to $116 million.

Reserves have been supplemented over the mentioned period through purchasing about $52.6 million by the central bank at inter-bank market as well as through reception of the amount equal to $31 million as loans and in grants.

The regulator says changes in balances of commercial banks’ correspondent accounts are a significant, but ordinary phenomenon.

“As it is known, the Central Bank of Armenia doesn’t set requirements to minimum of correspondent accounts in foreign currencies,” the central bank’s press office says. “This means that amounts of the accounts reflect management decisions of commercial banks amid changes in investment environment outside and inside the country.”

As a result, the accounts’ balances fluctuate. For example, the correspondent accounts’ balances grew by $106 million in 2015.

The regulator’s specialists say the amount of Armenia’s international reserves continues complying with all the requirements applied in the international practice, particularly in terms of the Armenian economy’s ability to neutralize outside shocks.

More than that, the central bank says Armenia’s international reserves allow covering four-month export and seven-month current liabilities.

Armenia’s gross international reserves totaled $1 588.8 million in July 2016 after growing 1.43% or by $22.4 million over one month. ($1 – AMD 474.85). --0-----