HEAD OF ARMENIA’S CENTRAL BANK COMMENTS ON SHADOW TURNOVER

YEREVAN, MAY 24. ARMINFO. The volume of cash conversion operations of
exchange points of Armenia much exceeds the volume of similar
operations of commercial banks. Chairman of the Central Bank of
Armenia Tigran Sargsian informed during the news conference, noting
that in no country of the world exchange points implement such large
operations like in Armenia. The original objective of the exchange
points to provide service to the population and foreigners, in
particular, to implement exchange of currency in small volumes maximum
under $300, according to international standards like in many
countries.

He declared the Central Bank will strictly follow introduction of
these international standards in Armenia. Moreover, this problem has
been solved within law and Armenia has joined all the international
conventions. The chairman of the Central Bank does not see any other
way of fight against the shadow economy – “we shall not allow them to
legalize the money thieved from the Government”.

In the estimation of the Central bank of Armenia, the volume of the
shadow turnover makes up 35-40% in GDP and now the population of the
country is holding over $1 bln free cash fund, the considerable share
of which is circulated in shadow.

Sargsian reminded that all the efforts of the Central Bank earlier
aimed at recovery of the banking system allowed to clear it from
“unhealthy” banks and provided full transparency of its activity. Now,
at the second phase the Central Bank has started the development of
the infrastructures and establishment of order in this sphere within
the next three years, Sargsian said. The matter concerns the
organizations, which carry out money transfers, exchange points,
currency dealers and agents.