ALMOST BLACK WEDNESDAY

168 Zham
March 19, 2009
Armenia

In about three hours the median rate will be publicized and I am sure
that [the Armenian national currency] dram will appreciate, Central
Bank of Armenia [CBA] president Artur Javadyan told us yesterday
afternoon [18 March]. There was some appreciation of US dollar at
the stock exchange yesterday. The rate was 373.44 against the rate
of 375.22 registered on the previous day (the dollar deals stood at
3.4m dollars at the exchange yesterday).

But yesterday, the dollar was more expensive in the currency market
when compared with the previous day. Even the CBA rate rose from
372.11 to 374.66 yesterday. The "official" exchange rate of the US
dollar did not correspondent to the real picture in the market. The
situation in the market was almost the same as it was on 2 March, on
the eve of the "black Tuesday". The banks and the currency exchange
offices were not selling dollar, or were selling in small quantities
at the rate of 377-380 drams per US dollar.

According to the rumours circulating in the financial and banking
circles, dollar is expected to rise sharply today. So, it is quite
possible that the CBA may shift to a policy of "plunging" exchange
rate.