ECONOMISTS TO FORM FOREIGN CURRENCY RATES

Panorama.am
19:36 10/10/2007

In the Armenian budget for 2008 the exchange rate of the American
dollar will not be used. This news was revealed by Central Bank
president, Tigran Sargsyan.

In his words, to avoid misunderstandings, a law was changed last year,
according to which exchange rate calculations for budgets will not
be made. Economists must do this according to the market economy,"
he said. At the same time, Sargsyan challenged these economists to
turn their attention to foreign currency rates and fluctuation of
prices, as well as put control on risks in the current circumstances.

In the words of the Central Bank president, by receiving new
financial tools, they will be able to apply to commercial banks
concerning future exchange rates. Risks will thusly be lessened. Such
services are already offered by five banks in Armenia, including
the Armenian Development Bank, Hayeconombank, and Armsvisbank. The
market economy assumes that this kind of transaction should increase
in number. "Then, the government can decide what stimulus was received
from the participants," noted Sargsyan.

We remind that on October 2 the Armenian government approved the
outline of the 2008 budget, which foresees an income of 744.7 billion
dram and expenses of 820.8 billion dram. The deficit will be 76
billion dram.