THE HIGH EXCHANGE RATE OF THE ARMD HARMS THE PRODUCERS

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| 19:29:15 | 30-05-2005 | Economy |

“The ARMD rate is not important. What is important is that it must
contribute to the development of the economy”, said economist Eduard
Akhajanov today during the discussion with the theme “Economy and
Currency Policy” in hotel Yerevan. He and member of the Central Bank
council Vache Gabrielyan were the guests of the political debates
club today.

According to the economist, the year 2004 was unique and dangerous for
Armenia. Last year the quantity of import was more than the quantity
of export. According to Akhajanov, the high exchange rate of the
ARMD harms the producers. He offers to change the direction of the
currency policy and to choose a new model of economic development.

According to him, it is necessary to have an economy based of
knowledge, but every year the allotments to the science from the budget
become less and less. If in 2004 it was 0.2% of the budget, in 2005
it was only 0.16%. The economist also complained that the Armenian
banks are not in active participation in the economic processes.

As for Vache Gabrielyan, the priority of the Central Bank is the
stability of costs. As for how the CB is able to realize that priority,
that is another question. According to Eduard Akhajanov, nothing can
be demanded from the CB today as it cannot do anything.