ARKA News Agency
Aug 11 2004

RA Defense Ministry delegation participates in bilateral
Armenia-American consultations in defense sphere

American college considers the possibility of teaching its programs
in NKR through internet

The exchange rate of AMD to get stable making AMD 530-550 per USD
till the end of 2004, according to experts of RA commercial banks

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RA DEFENSE MINISTRY DELEGATION PARTICIPATES IN BILATERAL
ARMENIA-AMERICAN CONSULTATIONS IN DEFENSE SPHERE

YEREVAN, August 11. /ARKA/. The delegation of RA Ministry of Defense
participated in Armenian-American defense consultations in State
Kansas. According to the RA Defense Ministry Information and Press
Service Department, the Head of the delegation, RA Deputy Minister
Arthur Aghabekyan, the Armenian Ambassador in the US Arman Kirakosyan
and the Military Attache of the Embassy, Colonel Arman Sargsyan took
part in the discussions.
In course of the consultations the Vice Deputy of US Defense Minister
James MacDougall, current situation and further perspectives of
Armenian and US military and military-political cooperation were
discussed, as well as issues of mutual interest.
The members of Armenian delegation visited Kansas capital Topeka in
frames of their visit, where had meetings with Ron Thornburgh,
Secretary of State, Adrian Polanski, Minister of Agriculture, Tod M.
Banting, General-adjutant of Kansas, Head of National Guards. Issues
of cooperation between Armenia and Kansas were discussed at the
meetings regarding the military and civil areas. The Armenian
delegation also visited several military units of Armed Forces and
National Guards of the US, as well as industrial units and places of
interest, in particular Harley Davidson factory, home museums of USA
Presidents Dwight Eisenhower and Harry Truman. Besides, meetings were
held with representatives of Armenian Diaspora.
Partnership program between RA armed forces and National Guards of
Kansas was developed in 2003. L.V. – 0–

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AMERICAN COLLEGE CONSIDERS THE POSSIBILITY OF TEACHING ITS PROGRAMS
IN NKR THROUGH INTERNET

STEPANAKERT, August 11. /ARKA/. NKR President Arkadi Ghukasian
received the secretary of Mt. Sierra college (California, USA) Vardan
Harutyunyan. According to NKR President’s Press Service Department,
in the course of the meeting Harutyunyan noted that he studied the
possibilities of teaching the programs of the college through
internet in NKR. According to him, the modern level of broadcasting
in Artsakh simplifies the problem and creates perspectives for the
development of this cultural area.
In his turn Ghukasian noted the importance of higher education
development in NKR and assured Harutyunyan that the authorities of
the republic would contribute to the realization of any practical
offer in that area. –0–

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THE EXCHANGE RATE OF AMD TO GET STABLE MAKING AMD 530-550 PER USD
TILL THE END OF 2004, ACCORDING TO EXPERTS OF RA COMMERCIAL BANKS

YEREVAN, August 11. /ARKA/. Till the end of 2004 the exchange rate of
AMD will get stable making AMD 530-550 per USD. According to the
survey held by ARKA, such an opinion was expressed by representatives
of some Armenian commercial banks. Conversebank anticipates that per
USD will cost AMD 540, Ardshininvestbank anticipates appreciation of
AMD to 540 + 5 drams, and ACBA – from AMD 540 to 550 per USD. According
to the representatives of ACBA, such fluctuation of AMD exchange rate
will be conditioned by an abrupt increase of the volume of import in
the end of the year, as well as by the expectations of the
population. This will also contribute to inflation, which will make
about 8%, according to the specialists of the bank.
With regard to the reasons of AMD appreciation, then according to the
specialists from Conversebank, this is the reason of the increase of
inflows from abroad not only in form of private transfers, but also
in the form of various state grants. According to the specialists of
the bank, also the means gained from the increase of loans of the
banking system for the 2nd Q amounting to AMD 21 bln. and lent in
foreign currency mainly should betaken into consideration.
According to Ardshininvestbank’s specialists, considering the fact
that the drop of USD exchange rate didn’t affect prices, favourable
conditions were created for importers and obstacles for exporters.
So, exporters expected just the opposite, and the importers- the
further drop of USD rate. Among the reasons of USD depreciation to
AMD is the currency policy of the majority of the biggest banks of
Armenia, the wait-and -see tactics of importers and wide-scaled
inflows of USD to the country through transfers, grants, means gained
from the export of goods, and tourists presence in the country.
According to the appraisals of Iinternational Trade Bank (ITB), the
common tendency of AMD appreciation is conditioned by the development
of economy and changes in the payments balance of RA. At that,
according to the experts of the bank, at present, it’s quite
difficult to define the reasons and consequences of high fluctuations
of the exchange rate recently.
According to experts of ACBA, such fluctuations of USD exchange rate
make the further prognosis of the dynamic of USD exchange rate quite
vague, so banks will possible reduce gradually their adherence to
foreign currency.
ARKA’sreference: The exchange rate of AMD fixed on July 21, 2004 by
CBA was set to be AMD 512,02 per USD, which corresponds to the
exchange rate set on June 5, 1997, when the exchange rate was AMD
512,18 per USD. The market price of AMD at that period was AMD 495
per USD. As of today, the official exchange rate of AMD makes AMD
519.10 per USD.
As ARKA, referring to the info provided by CBA Chairman Tigran
Sargsyan, informed before, for the first 6 months of 2004 AMD
appreciated by 6% to USD. A.H. –0–