ARMENIAN COMMERCIAL BANKS GAMBLING ON NATIONAL CURRENCY DOWNFALL?

PanARMENIAN.Net
03.03.2009 15:20 GMT+04:00

/PanARMENIAN.Net/ Until recently, keeping up the dram rate at the
existing level was ineffective, Dashnaktsutyun Party representative,
the MP Ara Nranyan told a press conference on Tuesday. According to
him, low national currency exchange range affects both importers and
local manufacturers.

The plummeting of Armenia’s currency couldn’t last long, so the
collapse resulted in an outburst: CBA announced the change in AMD
exchange rate. "Phased introduction of floating exchange rate policy
would have prevented sharp leaps in national currency rate. Today this
omission will have a harmful effect on businessmen, who’ll experience
great difficulties. I wonder if we’re late with floating exchange
rate policy implementation ," Nranyan said.

"Up to recent times CBA advised about keeping savings in national
currency, but currently under financial crisis the situation
altered sharply – the deficit occurred which induced CBA to purchase
dollars. Ruble transfer volume reduction was also registered. On the
other side, some banks and exchange points, being aware of approaching
dollar deficit, urge their clients to accept their credit in dollars
instead of Armenian drams."

The dram-to-dollar exchange rate has gone up to AMD 360/$1 in few
hours today against yesterday’s 305 -310 index for sale and purchase
respectively.

Dram/euro exchange rate reached AMD 440 (against 387).

The upsurge followed CB President Arthur Javadian’s statement on
cessation of control over the foreign currency market and return to
floating rate policy.

According to the Central Bank, the dollar exchange rate will fluctuate
from AMD 360 to 380 in 2009.

From: Emil Lazarian | Ararat NewsPress