ANDRANIK MARGARYAN: DEVALUATION OF USD NOT UNEXPECTED FOR US

ARKA News Agency, Armenia
Aug. 29, 2006

YEREVAN, August 29. /ARKA/. Devaluation of USD was not unexpected for
us, Prime Minister of Armenia, leader of RPA Andranik Margaryan told
Haykakan Zhamanak newspaper. He finds that harm done to the Armenian
economy by the devaluation of USD "is very relative".

"In some spheres its influence is negative and in some others –
positive", he added.

He emphasized that the process of revaluation of Armenian dram
continued already two years, and a year ago the RA government in
cooperation with the CBA (Central Bank of Armenia) had carried out
a program of events – issued bonds, in order to make revaluation of
AMD more fluent.

"If we did not interfere, such revaluation would have happened as
early as beginning of 2005, and people would be in a worse situation"
Margaryan said.

He emphasized that "the government is responsible for risks of both
entrepreneurs and common citizens".

As of beginning of 2006, strengthening of the national currency against
USD made 13.3% (from AMD 450,19 to 397,36 for $1). As of August 29,
2006, Armenian dram went up against USD by 4,5% (by nominal exchange
rate).

On August 29, the Central Bank of Armenia set the following exchange
rate: AMD 397,36 for $1.