IMF: ARMENIAN AUTHORITIES’ RETURN TO FLOATING EXCHANGE RATE POLICY RIGHT STEP

ARKA
May 12, 2009

YEREVAN, May 12. /ARKA/. Armenian authorities were right in correcting
exchange rate of the national currency and returning to floating rate
policy, IMF Mission Chief for Armenia Mark Lewis said on Monday in
Yerevan, at a presentation of a report on Caucasus and the Central
Asia’s economic prospects.

He said that transition to the floating rate policy has been carried
out very reasonable, taking into account the problem of dollar
popularity in the country.

Dollar deposits/credits ratio has been taken into account as well.

Other approach could destabilize things in the country, Lewis said.

He stressed that transition should have been logical and cautious
not to destabilize situation in financial sector.

IMF Resident Representative in Armenia Nienke Oomes finds the situation
on Armenian foreign exchange market stable.

He said that the dram can strengthen amid growing prices, though many
things will depend on situation in Russia.

On March 3, the Central Bank of Armenia announced return to floating
exchange rate policy

Immediately after that, Armenian dram plunged 66.36 points against
U.S. dollar to AMD 372.11 = $1.

Specialists expect the exchange rate to range from AMD 360 to 380
per dollar this year.