ARMENIA: NATIONAL CURRENCY DEVALUATION RESULTED IN REFINANCING RATE INCREASE
PanARMENIAN.Net
03.03.2009 19:32 GMT+04:00
/PanARMENIAN.Net/ CBA Council increased the refinancing rate and
fixed it at 7,75%, CBA Chairman Arthur Javadian declared. According
to him, CBA decision was adjusted to deflationary environment crisis
and slow rate of growth for domestic demand at the world market ,
which contribute to formation of low inflation rate. Nevertheless
under devaluating currency, risks to exceed the inflation target are
becoming real.
The last time CBA increased the refinancing rate was on Feb 10, 2009,
when it was lowered by 0,25% and fixed at 6,75% The dram-to-dollar
exchange rate has gone up to AMD 360/$1 in few hours today against
yesterday’s 305 -310 index for sale and purchase respectively.
Dram/euro exchange rate reached AMD 440 (against 387).
The upsurge followed CB President Arthur Javadian’s statement on
cessation of control over the foreign currency market and return to
floating rate policy.
According to the Central Bank, the dollar exchange rate will fluctuate
from AMD 360 to 380 in 2009.