ACCORDING TO CBA, THIS YEAR ARMENIA’S GDP TO GROW BY 7-8%, INFLATION TO MAKE ABOUT 4%

Noyan Tapan

Jan 20, 2009

YEREVAN, JANUARY 20, NOYAN TAPAN. This year Armenia’s GDP will
grow by 7-8%, while inflation will make about 4%. Announcing these
forecasts of the Central Bank of Armenia (CBA) at the January 20
press conference, the CBA Chairman Arthur Javadian at the same time
said that the deflationary pressures are quite great and may affect
the economic growth of the country.

He assured those present that the government will take a number of
large-scale measures in this direction.

A. Javadian said that Armenia’s currency policy will not undergo
any changes, and the CBA will continue its policy of "floating"
exchange rates.

In his words, taking into account the the not very much favorable
situation in the international financial market and the global
financial crisis, today it is extremely important to maintain the
stability of Armenia’s financial system. The intervention of the CBA
in the currency market is conditioned by this fact. This intervention
will be temporary, but it is still unclear how long it will last.

A. Javadian denied the rumors that the CBA allegedly sold about 100
million dollars in January. Advising citizens to keep their savings
in the national currency, he noted that the Armenian commercial banks
establish higher interest rates for deposits in Armenian drams than
for those in foreign currency.

From: Emil Lazarian | Ararat NewsPress