PUBLIC SERVICES REGULATORY COMMISSION: SITUATION ON COMMODITY MARKETS STABILIZED IN ARMENIA

ARKA
March 5, 2009

YEREVAN, March 5. /ARKA/. The situation on commodity markets has
stabilized in Armenia, the pres service of Armenia’s Public Services
Regulatory Commission reported.

The Commission continues control over the developments on the markets,
says the report.

According to the report, the fever has abated and no change in prices
has been recorded in some retails chains and shops under monitoring
throughout the country.

The 10-12% price rise was recorded for only 4-5 kinds of first
priority goods.

"Along with stabilization of the dollar exchange rate and as a result
of the preliminary discussions held with importers the situation is
expected to improve in the commodity markets," the press release says.

The Commission says it continues to respond to information and reports
received on the matter.

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 of capital inflow. As a result, dollar rate went
up from 305-308Drams to 380-400Drams for $1 during March 3 leading
to rise in prices for first priority needs, including fuel.

According to CBA experts, exchange rate is expected to range between
360 Drams and 380Drams for $1 in 2009.