CBA toughened foreign currency operations control

PanARMENIAN.Net - CBA toughened foreign currency operations control, CBA Chairman Arthur Javadyan told a news conference, referring to alterations to the Law on "Regulation and Control of Exchange rate".



The alterations aim at further strengthening of dram, dram demand increase and struggle against dollarisation. According to Javadyan, dollarisation has as significant an impact on unprotected sections of population as inflation does.



Says CBA Chairman, "Dollarisation rate comprised 90% in neighboring countries.

In this context, any exchange rate fluctuations outside Armenia make a strong influence on RA economy. Alterations to the law are of punitive and prophylactic character, which means no business transactions should be effected in foreign currency. Alterations stipulate for the following fines: 1st violation -2000 times the minimal salary amount instead of previously fixed 100 times, 2nd violation - 4000 times the minimal salary amount instead of previously fixed 200 times, which means that even for fixing a price in foreign currency a fine of AMD 2-4 million will be imposed. The mechanism aims to prevent people from effecting transactions in foreign currency.''



The alterations apply to CBA -licensed subjects, mainly currency exchange points and currency dealers and business entities.



Exclusions, both in previous and altered law, expand to importers and exporters who must effect transactions in foreign currency due to the nature of their activities.