WORLD BANK EXPRESSES ITS SUPPORT TO THE RETURN TO FLEXIBLE EXCHANGE RATE REGIME IN ARMENIA

AZG DAILY
04-03-2009

Economy

The World Bank expressed its support to the return to a flexible
exchange rate regime announced by the Central Bank of Armenia and the
accompanying policy measures to support this transition. An official
from the Armenian office of the World Bank informed Armenpress
that the adjustment of the exchange rate is necessary in order to
strengthen Armenia’s competitiveness and mitigate the impact of the
negative external shocks that the economy is facing in a difficult
international economic environment. A flexible exchange rate regime
is a key building block of the comprehensive economic policy program
put in place by the Armenian authorities to cope with the impact of
the global economic crisis.

The adjustment of the exchange rate will help Armenian companies
to compete more successfully in global and domestic markets and
will pave the way for high and sustained growth. According to the
WB’s information, Armenia is facing the global economic crisis with
strong defense lines, thanks to prudent macroeconomic management,
a low level of public debt, and a sound banking system.