ARMENIAN DRAM STRENGTHENS AGAINST USD BY APPROX 17% IN 2007
ARKA News Agency
Jan 10 2008
Armenia
YEREVAN, January 10. /ARKA/. Armenian Dram strengthened against US
dollar by approximately 17% in 2007, the President of the Central Bank
of Armenia (CBA) Tigran Sargsian said in his exclusive interview to
ARKA Agency. In 2007 the Central Bank purchased around $350mln on
the market, which is 40% more than in 2006, but the Armenian Dram
went on strengthening, he said.
Yet, this process facilitated reduction of inflationary expectations
and inflationary potential in the country, Sargsian said.
According to CBA President, bearing in mind quite low price flexibility
on the domestic market under the conditions of outer price shocks
Armenia needs to take measures to strengthen competition on the
domestic market so that the strengthening of the national currency
is accompanied by control over increase in prices for imported goods.
Sargsian also pointed out the importance of the fact that participants
of Armenia’s financial market started offering new services to their
clients. "Particularly, derivatives are offered allowing them obtaining
predictable exchange rates for a small payment," he said.
"Naturally the enterprises that operate transparently can take
advantage of these services as they can sign appropriate agreements
with commercial banks", Sargsian said.
According to him, the Central Bank will be promoting introduction of
a new financial market culture and the participants should learn how
to control their exchange risks on their own.
During 2007 exchange rate of USD versus Armenian Dram reduced 16.31%
– from 363.5Drams for $1 in the beginning of the year to 304.22Drams
at the end of 2007.