Central Bank of Armenia Intends to Release Currency Exchange Rate Fluctuation Analysis After Presidential Election

(Source: Arka News Agency)

YEREVAN, December 10. /ARKA/. Central Bank of Armenia intends to release currency exchange rate fluctuation analysis after presidential election.

The CBA Chairman Tigran Sargsyan told journalists on Saturday that precipitous fluctuations in foreign exchange rates especially on weekends arouse the bank’s concern.

“We have carried out scrutiny in foreign exchanges and commercial banks and, taking into account pre-election situation, decided to publish a detailed report after presidential elections”, he said.

Sargsyan said it would be better to discuss causes after elections, in calm atmosphere and without emotions.
He said comprehensive discussion will be held then with answers to many questions such as who are key players in this market, what schemes are working here, are there any financial means attracted from abroad and what for they have been attracted and where sent.

“These are very delicate matters and it is wrong to waste comments now, especially taking into consideration the fact that appropriate agencies haven’t completed their study yet. It would be early to make comments”, he said.

The American currency overstepped the next psychological barrier on the financial market of Armenia. On November 23 the dollar exchange rate dropped down to less than 300 Drams for $1. In some currency exchange points the rate has reduced down to even 270-280Drams. In the meantime, dollar purchase rate was 290-303 Drams for $1. As a result, USD average market exchange rate published by the Central Bank was 305.46 Drams for $1 – a 7.43pct decrease.

Banking dealers believe USD exchange rate will stop decreasing by the end of this year and will remain within 300Drams for $1. According to bankers, the Central Bank will try to prevent further reduction even in the coming New Year’s period.

Since the beginning of November USD exchange ware toward Armenian Dram reduced 6.04% – from 325.09 Drams on October 31 for $1 to 305.46Drams on November 26. Since the beginning of the year, dollar weakened toward Dram almost by 16% and by 18% – as compared with the same date of 2006 (372.38Drams for $1 on November 26 2006).

In 2003-2006 US dollar devaluated 28.12% in Armenia. Average exchange rate of USD against Drams was the following in the period: 578.77Drams for $1 in 2003, 533.45Drams in 2004, 457.69Drams in 2005 and 416.04Drams in 2006. In 2006 USD weakened against Drams 19.26% (at nominal rate) – from 450.19 Drams in the beginning of the year to 363.50Drams at the end of the year.

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