EX-PREIDENT OF ARMENIAN CENTRAL BANK PREDICTS FURTHER STRENGTHENING OF DRAM

ArmInfo
30.03.2010

ArmInfo. All the necessary financial and economic pre-conditions have
been created in Armenia to strengthen dram, ex-chairman of Armenian
Central Bank Bagrat Asatryan said at today’s press-conference. Among
these preconditions he mentioned sharp reduction of the dram supply at
the currency market, that is to say, the market machinery demand/supply
has started functioning. The events initiated by the Central Bank,
in particular, hardening of the normative on obligatory reservation
of the foreign currency funds attracted by the banks as well as the
normative of the foreign currency position, are the main reasons
which led to certain "deficit" of Armenian dram at the market.

The expert thinks that the political factor will also play not a
small part in further strengthening of the national currency. In
particular, the point is about deep distrust of population in the
political leadership of the country, which leads to "outflow" of the
capital to foreign markets. He also added that at present Armenian
business representatives are interested in making investments in
Georgia where more favorable conditions for business have been created.

Asatryan also presented the indices which demonstrate dram supply
reduction in the market. In particular, her means decrease of the dram
cash in the economy. According to the results of 2008, the dram cash
circulation amounted to 344 bln drams, but according to the results
of 2009, this index decreased to 320 bln drams. As of 25 March 2010,
this index decreased to 274 bln drams, that is to say, over the last
3 months the index reduced by 45 bln drams.

From: Emil Lazarian | Ararat NewsPress