ECONOMIC ENTITIES SHOULD NOT TAKE ADVANTAGE OF CURRENCY SITUATION TO RAISE PRICES

ARKA
March 4, 2009

YEREVAN, March 4. /ARKA/. Economic entities should not take the
advantage of the situation on the Armenian currency market for raising
the prices, Press Secretary of the country’s State Commission for
Protection of Economic Competition (SCPEC) Armine Udumyan said in
commenting the fever caused by fall in national currency rate and
rise in process for some foodstuffs.

Tuesday, the Board of the Central Bank of Armenia (CBA) decided to
return to the policy of the floating rate due to worsening trade
conditions under the global financial and economic crisis, as well
as due to slowing down capital inflow. According to CBA experts,
exchange rate is expected to range between 360 Drams and 380Drams
for $1 in 2009.

A rise in prices for some foodstuffs has already been recorded
and people, giving way to panic, started buying first priority and
foodstuffs in supermarkets and shops.

The Press Secretary of the Commission said that nobody has a right
to dictate economic entities under market economy conditions, but
price rise should be in proportion to the processes going on. The
current situation should not be used as an occasion for abuses and
anti-competitive agreements between economic entities with dominating
positions on the market, she said.

All cases reported to the Commission are currently considered. Economic
entities applying20inadequate price rise, will be called to account
under the law, she said. The previous 25-item list of goods to be
monitored is currently extended and contains up to 40 articles. The
monitoring will be implemented on an hourly basis, with the monitoring
results to be summarized at the end of the day. The target group set
up is to take particular measures based on the monitoring results.