ARMENIA LETS CURRENCY FLOAT, SEEKS IMF BAILOUT

International Herald Tribune
March 3 2009
France

YEREVAN, Armenia: Armenians rushed to buy bread, butter and other
staples Tuesday and stores shut down in panic after the government
announced it would let the national currency fall and was seeking a
bailout from the IMF.

Banking authorities said the national currency — the dram — could
sink up to 24 percent with the decision. The devaluation was sure to
hurt ordinary Armenians, with prices for imported goods expected to
rise sharply.

The Armenian Central Bank decided to limit currency interventions and
return to free float policy "due to the financial and economic crisis,
worsening terms of trade and slowing capital inflows," bank chairman
Artur Dzhavadian told reporters Tuesday.

Armen Gevorkian, a 33-year-old engineer, was stocking up on food
in downtown Yerevan, where staples typically include bread, butter,
sugar, salt and vegetable oil.

"I’m buying food with all the drams I have because the dollar is
going to rise and then the situation will be very difficult," he said.