EBRD: FURTHER STRENGTHENING OF AMD THREATENS COMPETITIVENESS OF REPUBLIC’S ECONOMY

ARKA News Agency, Armenia
Dec 12 2006

YEREVAN, December 12. /ARKA/. Today presenting the EBRD Transition
Report for 2006 an expert of the European Bank for Reconstruction
and Development Alexander Cirmiciu said that further strengthening
of AMD threatened the competitiveness of the republic’s economy,
however it could happen in case of absence of growth of the commercial
production", Cirmiciu emphasized.

At the he added that EBRD hoped for inflow of private investments into
the republic, which would enable to secure growth of the production.

In 11 months of 2006, AMD strengthen by 21,99% against USD – from AMD
450,19 for $1 at the beginning of the year to AMD 369,05 for $1 by the
end of November. During first 12 days of December AMD strengthened
against USD by 0,94%. Today average nominal exchange rate makes AMD
365,62 for $1.

During the period between 2003 and 2005, in Armenia USD has devaluated
20,92%. In 2003, the average exchange rate of the USD was equal to
AMD 578,77, in 2004 – AMD 533,45, and in 2005 – AMD 457,69.