ARMENIAN CENTRAL BANKS RULES OUT SHARP CURRENCY FLUCTUATIONS

ARKA
June 11, 2009

YEREVAN, June 11. /ARKA/. No short-term sharp currency fluctuations
are possible in Armenia, Deputy Chairman of the Central bank of
Armenia Vache Gabrielyan told ARKA on Thursday.

After record-high foreign exchange auctions on March 3, the Central
Bank of Armenia (CBA) returned to the floating exchange rate policy,
with the adjustment of the dollar exchange rate (on March 4,5 and 6)
being the only logical step.

On March 3, CBA Chairman Arthur Javadyan officially stated that the
Central Bank had decided to abridge its interventions in the foreign
exchange market, returning to the policy of the floating exchange
rate. According to CBA experts, the average weighed AMD/USD exchange
rate is expected to range from AMD 360 to AMD 380 per $1. Just after
CBA returned to the floating exchange rate policy, the average weighed
AMD/USD exchange rate dropped 66.36pct (compared to March 3) to AMD
372.11 per $1.

"I do not think that any dramatic currency fluctuations are possible
due to the official retrieval of the flexible exchange rate policy,"
Gabrielyan was quoted as saying.

CBA avoided making foreign-currency investments in the past two months,
he added.

Commenting on Academician Abel Aghanbekyan’s forecasts of the
Armenian dram vs. U.S. dollar exchange rate of 500 drams per $1,
the CBA deputy chairman said these forecasts were based on sepa rate
sectors’ needs.