March 9 record-low foreign exchange auctions on NASDAQ OMX Armenia can
be considered touchstone: banker

YEREVAN, March 10. /ARKA/. Monday’s record-low volume of foreign
exchange auctions on NASDAQ OMX can be considered a touchstone, said
Sergey Shevchenko, head of Ameriabank’s Trade Operations Department.

On March 9, NASDAQ OMX Armenia Stock exchange posted record low foreign
exchange auctions of $150,000, with the average AMD/USD exchange rate
being AMD 364 per $1.

After record-high foreign exchange auctions on March 3, the Central
Bank of Armenia (CBA) retrieved to the floating exchange rate policy,
with the adjustment of the dollar exchange rate (on March 4,5 and 6)
being the only logical step.

On March 3, CBA Chairman Arthur Javadyan officially stated that the
Central Bank had decided to abridge its interventions in the foreign
exchange market, returning to the policy of the floating exchange rate.
According to CBA experts, the average weighed AMD/USD exchange rate is
expected to range from AMD 360 to AMD 380 per $1. Just after CBA
returned to the floating exchange rate policy, the average weighed
AMD/USD exchange rate dropped 66.36pct (compared to March 3) to AMD
372.11 per $1.

Pointing out a pent-up demand in foreign-currency sales, Shevchenko
said the banks are ready to agree on AMD 372- AMD 375 per $1, as on
March 2, they sold the U.S. dollar at 307 drams.

`Thus, taking a wait-and-see attitude, local market participants were
waiting for a favorable exchange rate at around AMD 350,’ Shevchenko
said, adding on March 9, it turned out that the exchange rate was
unlikely to go lower than AMD 361.25 per $1.

The bids showed that demand outstrips supply, the purchasers were
extremely impatient and the dollar was sold at AMD 364 per $1, the
banker said.

According to Shevchenko, the March 10 deals will show whether the
AMD/USD exchange rate will stick to AMD 361- AMD 364 per $1 or Monday’s
deals were only a prelude to another hike in the U.S. dollar exchange
rate.

Ameriabank CJSC is an investment bank offering a comprehensive set of
corporate and limited range of retail bank services and products. The
Chairman of the Ameriabank Board of Directors is Ruben Vardanyan, and
the Chairman of the Management Board-General Director is Artak
Hanesyan. Ameriabank’s strategic partner is Troika Dialog Group ` one
of the biggest investment-banking companies in Russia. `0–