AGAIN THE ARMENIAN MENTALITY, THIS TIME REGARDING THE MONEY
Lragir
Jan 10 2008
Armenia
Judging by 2007, remittances are expected to grow by 40 percent
in 2008, stated the president of the Central Bank of Armenia Tigran
Sargsyan in an interview with ARKA on January 10. This index is almost
twice as high as the estimate of the Central Bank at 25 percent. Tigran
Sargsyan says the volume of remittances will exceed 1 billion dollars.
According to the president of the Central Bank, the volume of
remittances grows progressively, which is an objective reality
determined by mentality. The banker said, ARKA reports, two thirds of
Armenians live outside Armenia, and when their financial and economic
situation improves, they make more investments in Armenia.
"Therefore, for our nation, this is objectively positive," Tigran
Sargsyan says.
Besides, Tigran Sargsyan thinks that Armenia is the focus of economic
interests not only for its citizens but also Armenians worldwide,
and the establishment of a favorable climate for investments spurs
the influx of capital, development of tourism, demand for services.
"This is the objective reality which is a long-term tendency, and if
no cataclysms happen in the world, namely in Russia and the United
States from where most remittances come, and which have the biggest
Armenian communities, this tendency will continue," the president of
the Central Bank stated.
By the way, he mentioned that in 2007 the revaluation of the dram
against the dollar was 17 percent. According to him, in 2007 the
Central Bank bought 350 million dollars which is up by 40 percent
from 2006. Nevertheless, despite the intervention, the Armenian dram
continued to revaluate, Tigran Sargsyan says. At the same time, he
says this process has reduced inflation estimates and the potential
for inflation. Tigran Sargsyan also says considering the elasticity of
prices inside along with price shocks outside, Armenia needs efforts
to promote competition inside the country to keep prices of imported
goods low along with the revaluation of the national currency.