SITUATION ON ARMENIAN COMMODITIES MARKET UNDER CONTROL

ARKA
March 3, 2009

YEREVAN, March 3. /ARKA/. The RA State Commission for Protection of
Economic Competition has established strict control over the Armenian
commodities market as the Central Bank of Armenia (CBA) has reverted
to its policy of floating exchange rate.

Press Secretary of the Commission Armine Udumyan reported that the
CBA Board took into account the gradually worsening trade conditions
amid the present global economic and financial crisis, as well as
lower capital flow rates, and decided to restrict its interventions
in the currency market thereby reverting to its floating exchange
rate policy. CBA experts believe that the USD average exchange rate
will be 360-380 AMD/$1 this year.

"At a meeting convened this morning, Chairman of the State Commission
for Protection of Economic Competition Ashot Shahnazaryan instructed
the Commission to expand the monitoring of the essential commodities
market. As a result, the list of monitored products has been expanded
up to 40 items against the previous 25, with hourly monitoring to be
conducted," Udumyan told ARKA.

She said that the monitoring results will be summed up at the
end of every day. The newly formed work group will take necessary
steps. Udumyan reported that the prices for some products have already
shown a rise. Some large economic entities have provided explanations
and been warned. The measures have curbed th e price rise.

The Commission urges the economic entities, especially large importers
and retailers, as well as the entities dominating the market and
producers, to avoid any unjustified rise of prices under the pretext
of return to the floating rate policy, abuse of market dominance
or anticompetitive agreements. The situation on the market is under
control, and, if necessary, the Commission will promptly respond,"
Udumyan said.

This morning, the average exchange rate between the USD and AMD was
41/305-308 AMD in Yerevan exchange offices. Over the last few days
the Armenian banks have restricted the sale of foreign currency
to individuals.

>From 2003 to 2008, the US dollar showed 47.3% depreciation against
the AMD in Armenia.