Armenia Launches Price-Fixing Probe

EurasiaNet, NY
March 9 2009

ARMENIA LAUNCHES PRICE-FIXING PROBE
3/09/09

Armenia’s state anti-trust agency will investigate alleged retail
price-fixing, as consumer prices continue to climb following the
Central Bank’s move to devalue the national currency.

The State Commission on Protection of Economic Competition announced
on March 6 that prices on some foodstuffs and home improvement goods
have soared to a "disproportionate and unfounded" degree. The agency
suspects that some importers and suppliers are colluding to fix
prices, Armenian news services reported Commission Chairman Ashot
Shahnazarian as saying. Commission investigators intend to compare
retail stores’ profit margins both before and after the dram’s
collapse. [For background see the Eurasia Insight archive].

The dram lost more than 20 percent of its value after Central Bank
officials announced March 3 that they would no longer defend the
Armenian currency. The decision caused panic buying in Yerevan and
elsewhere. Since then, the dram has increased moderately against
dollar, closing at 359.37 on March 9, the Central Bank of Armenia
reported.