MP: Armenian importers apply double-standard policy

YEREVAN, March 12. /ARKA/. Armenian importers apply a double-standard
policy, Chairman of Armenian Parliament Commission for Financial,
Credit and Budgetary Issues, MP from the ruling Republican Party of
Armenia Gagik Minasyan said.

`When our national currency devaluated, importers raised the prices for
main foodstuffs groundlessly saying that they need money for purchase
of new goods. Yet, in the revaluation period, they were not reducing
the prices to sell the old goods purchased at a higher price. This is a
double-standard policy,’ Minasyan said adding that the State Commission
for Protection of Economic Competition must closely watch these
processes.

`If importers are not reducing the prices while Dram is strengthening,
they should not raise prices during devaluation of Dram. In this
respect, a serious work should be done by the Commission,’ he said.

Minasyan also appreciated prompt measures taken by the Commission to
settle the situation so far.

On March 3, the Central Bank of Armenia (CBA) returned to a free float
for the rate. The CBA experts expect the average weighted exchange rate
to range between 360 Drams and 380Drams for $1 in 2009.

Fearing that prices could rise, people rushed to supermarkets to buy
first priority goods, including butter, sugar and flour, thus
artificially raising the demand for these goods.

Some economic entities took the advantage of the situation and raised
the prices for some first priority goods.

Armenia’s State Commission for Protection of Economic Competition
carried out a monitoring and instituted administrative proceedings on
cases of unjustified price rise on four following markets ` vegetable
oil and butter, housing appliances and medicines.

Currently the situation is somehow stabilized and initial prices are
re-established on the markets of sugar and flour. N.V. `0–