Cash Circulation in Armenia: Ways to Improve the System

The volume of cash in circulation in Armenia is continuing to increase despite the developments and rapid growth of non-cash payment methods. In connection with the above, the effective organisation of cash circulation is becoming a primary issue.

The main participants in the cash circulation system are the Central Bank of Armenia (CBA), 18 commercial banks (with about 550 branches), six cash-in-transit (CIT) companies and banks’ customers, including citizens.

The CBA plays a key role in the cash cycle, acting as the main cash depository, distribution centre and cash processor, destroying worn-out and unfit banknotes.

Under that model of the cash cycle, the processing and authentication of recirculated cash has been mainly carried out at the central bank’s Cash Centre, ensuring the highest quality of cash released into circulation.