Abrupt introduction of floating exchange rate policy is more profitableMarch 9, 2009 - 15:16 AMT PanARMENIAN.Net - "Dram devaluation process is an objective step in CBA and RA Government policy," Vice Minister of Finance Vardan Aramyan told a news conference on Friday. According to him, the preconditions for dram devaluation had been registered since September 2008. Recession in trade, transfer flow decrease and CBA internal reserves resulted in floating exchange rate policy introduction. Previous experience of many countries practicing floating exchange rate policy, including Russia, had been examined. As the financial system of Armenia proved to be the most stable in the region, drastic implementation of floating exchange rate policy was applied here, which is more profitable in the long run. "Dram devaluation resulted in price increase for imported goods. In current circumstances CBA and the Armenian Government had to chose between financial stability or price stability in the country," Aramyan said. Referring to the issue of possible introduction of fixed AMD exchange rate by CBA, (AMD360 - 380 against $1), Aramyan explained that CBA never announced a restraining policy for AMD. "The forecast was made to prevent the holding effect and minimize negative expectations." According to Aramyan, the AMD exchange rate has already been stabilized. If purchase and sale margin amounted to AMD20 on Mar. 5, the current margin has decreased to AMD 4-5. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Concept to complete Yerevan Cascade discussed at city hall A conceptual proposal to complete the Cascade complex in downtown Yerevan has been presented by Jean-Michel Wilmotte. Pashinyan visits flood-hit region Armenian Prime Minister Nikol Pashinyan on Saturday, June 8 visited the disaster area in the Lori province. €3.5 mln EU grant to support justice reforms in Armenia The European Union has paid €3.5 mln grant to Armenia within a €11mln program on Support to Justice Reforms. Yerevan reacts to Baku’s proposal to see Minsk Group abolition Alen Simonyan has declared that Armenia is taking steps aimed at concluding a peace treaty with Azerbaijan. |