IMF: ARMENIAN DRAM MAY DEVALUATE BY 17-30%

ARKA
March 3, 2009

YEREVAN, March 3. /ARKA/. Armenian Dram may devaluate by 17-30%,
IMF Resident Representative in Armenia Ninke Oomes told journalists
Tuesday.

Over the year 2008 Armenian Dram was over-estimated by an average
of 17-30% and now the rate will be adjusted within the same range,
she said.

These are rough estimates not to be taken serious: it is just that
the floating rate of Armenian Dram could be expected to fluctuate
within this range, Oomes said.

For comparison, devaluation of national currency made 20% in Belarus
and Kazakhstan, 11% in Georgia and almost 35% in Russia due to fall
in oil prices. Yet, the new rate level is to be established by the
market, she said.

The Chairman of the Central Bank of Armenia (CBA) Artur Javadyan
reported 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.

In the period from 2003 to 2008, USD devaluated by 47.3% in Armenia.