MARCH 3 DECISION OF CBA CREATED CHAOTIC SITUATION IN ECONOMY, ANC STATES

Noyan Tapan

M arch 5, 2009

YEREVAN, MARCH 5, NOYAN TAPAN. On March 3 the Central Bank of Armenia
(CBA) made a decision, by which it gave up the fixed exchange rate
policy it has conducted in recent years. According to a statement
that the Armenian National Congress (ANC) issued on the same day,
the CBA did not give any clear explanation about the expected policy
with respect to the Armenian dram.

The ANC believes that this decision has created a chaotic situation in
Armenia’s economic system. The decision is a result of the authorities’
short-sighted and criminal policy of ignoring the intensity of the
global crisis and preserving the vicious economic system aimed at
serving the interests of the importing oligarchs.

According to the statement of the ANC, all this is leading to a social
disaster, bankruptcy of small and medium businessmen, deterioration of
the financial state of commercial banks, and the continuous enrichment
of the importing oligarchs and high-ranking officials. As a result,
the distrust of society and economic entities in the economic policy
of the government is increasing, creating panic moods.

The Armenian National Congress believes that in the current situation,
the following measures should be taken:

– ensuring transparency of the formation of living essentials’
prices with the aim of excluding the possibility of superprofits;
urgent implementation of antimonopoly measures,

– a reduction in the prices of public services (in particular, gas
and power),

– temporary suspension of tax administration reforms until the crisis
is overcome.