CENTRAL BANK OF ARMENIA RETURNS TO FLOATING EXCHANGE RATE

AZG DAILY
04-03-2009

Economy

"The economic system of Armenia is stable, sufficiently capitalized
and is ready to resist the future challenges of the crisis," the
Board of Directors of the Central Bank of Armenia stated, according
to Public Radio of Armenia.

Taking into consideration the continuous worsening terms of trade and
slowing capital inflows in the current stage of the global financial
crisis, the CBA Board decided to limit currency interventions and
return to free float policy. That latter will allow the exchange
rate to be formed in line with the current macroeconomic indices,
which will considerably improve the external competitiveness of the
country and will promote the process of creation of new jobs.

The Central Bank expects the dram to average 360-380 to dollar. The
refinancing rate was raised by 100 basis points to 7.75 percent.

From: Emil Lazarian | Ararat NewsPress