SERGEI ALEKSASHENKO: DEVALUATION OF NATIONAL CURRENCIES OF ARMENIA AND RUSSIA IS A LESSON FOR TWO COUNTRIES
Noyan Tapan
May 26, 2009
Yerevan, May 26, Noyan Tapan. The current world financial and economic
crisis is the first global recession, and no country can escape its
impact, told Sergei Aleksashenko, former First Deputy Chairman of
Russia’s Central Bank at the "Armenia: Weathering the Global Storm"
economic forum kicked off on May 25 in Yerevan.
International financial organizations and most economists predict a
deep and lengthy recession for a wide range of developed and developing
countries. As many of these states, Armenia will face the consequences
of adverse global trends, and in some ways is likely to be even more
affected owing to a dramatic economic slowdown in some of its main
trading partner countries.
According to Sergei Aleksashenko, similar crisis occurs from time to
time and result in elimination of weakest enterprises. "Governments
should prepare for next crisis and the resources of the Central Bank
should be used to resist it. In this respect the U.S. is in better
condition than Armenia and Russia," Sergei Aleksashenko said.
According to him, devaluation of the national currencies of Armenia
and Russia during global crisis by 20 to 40 per cent was a bitter
lesson for both countries, in any country fluctuation of exchange
rate is not used as economic policy tool. Sergei Aleksashenko called
on Armenian and=2 0Russian authorities to implement a policy aimed
at strengthening national currency.
Besides, in S. Aleksashenko’s opinion, institutional reforms should be
among main directions of governments of CIS countries. Although the
peak of recession has passed but the economy will be still retarded
by slowdown of anti-crisis and anti-corruption measures.
According to S. Aleksashenko over the first quarter of 2009 Russian
economy experienced 10 per cent drop, which is the highest rate among
20 world powers. This highest decline was conditioned by the dependency
of Russia on the world raw material markets and oil prices. In early
2008 the drop in demand for metals, products of chemical industry
resulted in the decline of Russia’s economy. In 2008 investments
reduced, since after Russian-Georgian was investors started to take
out their investments from Russia.