Armenpress

BANK GOVERNOR PREDICTS FURTHER GAIN OF DRAM OVER US
GREENBACK

YEREVAN, JUNE 9, ARMENPRESS: The president of one
of the leading Armenian commercial banks predicted
today that Armenia’s national currency, Dram, will
continue to gain over the US Dollar.
Ashot Osipian, the governor of Armeconombank, cited
global depreciation of the greenback, saying this
trend has played a role in strengthening of Armenian
Dram. Other factors, accounting for continued
strengthening of Dram according to Osipian, are
domestic developments, particularly, growth in the
amount of money remittances from abroad. “The demand
for US Dollars in Armenia has cut back drastically. In
May alone the amount of money transfers from abroad
through our bank increased 35 percent, which in
concert with cut of natural gas consumption are adding
to the fall of US Dollar’s value,” he said.
Osipian also commended the Central Bank policy to
curtail ‘dollarization’ of Armenian economy and
described the decision of Fitch Rating to assign on
June 5 Armenia foreign and local currency Issuer
Default Ratings (“IDR”) of ‘BB-‘ (BB minus) with a
Stable Outlook as ‘very positive.’ Fitch Ratings said
Armenia’s sovereign credit ratings are supported by
prudent macroeconomic policies and a declining public
and external debt burden that compares favorably with
rated peers.
Fitch said ‘impressive economic performance has
been underpinned by a robust and coherent
macroeconomic policy framework and wide-ranging
structural reforms that have enhanced the capacity of
the economy to absorb adverse shocks.’
Osipian said Armeconombank has applied to Fitch
Ratings to be granted its own credit rating which is
expected to come in August.