ARMENIA: DON’T WORRY ABOUT ANOTHER DEVALUATION – CENTRAL BANK CHIEF

Eurasianet

April 9, 2009

Fears that the Armenian dram will again be devalued are without merit,
Central Bank of Armenia Chairman Artur Javadian told an April 8 news
conference. Commercial banks have recovered from the dram’s rapid
devaluation in early March, Javadian asserted.

The dram tumbled from 305.75 to 372.11 against the US dollar on
March 3 after the Central Bank decided to free float Armenia’s
national currency. As a result of the drop, the banking sector lost
up to 4.7 billion drams (about $12.6 million), the bank’s chairman
announced. Armenian banks converted their deposits from drams to
dollars and euros, and adopted very conservative credit policies,
Javadian continued. The Central Bank spent $600 million to prop up
the dram, he said, Arminfo news agency reported.