MP: Armenian importers apply double-standard policy

YEREVAN, March 12. /ARKA/. Armenian importers apply a double-standard policy, Chairman of Armenian Parliament Commission for Financial, Credit and Budgetary Issues, MP from the ruling Republican Party of Armenia Gagik Minasyan said.

“When our national currency devaluated, importers raised the prices for main foodstuffs groundlessly saying that they need money for purchase of new goods. Yet, in the revaluation period, they were not reducing the prices to sell the old goods purchased at a higher price. This is a double-standard policy,” Minasyan said adding that the State Commission for Protection of Economic Competition must closely watch these processes.

“If importers are not reducing the prices while Dram is strengthening, they should not raise prices during devaluation of Dram. In this respect, a serious work should be done by the Commission,” he said.

Minasyan also appreciated prompt measures taken by the Commission to settle the situation so far.

On March 3, the Central Bank of Armenia (CBA) returned to a free float for the rate. The CBA experts expect the average weighted exchange rate to range between 360 Drams and 380Drams for $1 in 2009.

Fearing that prices could rise, people rushed to supermarkets to buy first priority goods, including butter, sugar and flour, thus artificially raising the demand for these goods.

Some economic entities took the advantage of the situation and raised the prices for some first priority goods.

Armenia’s State Commission for Protection of Economic Competition carried out a monitoring and instituted administrative proceedings on cases of unjustified price rise on four following markets – vegetable oil and butter, housing appliances and medicines.

Currently the situation is somehow stabilized and initial prices are re-established on the markets of sugar and flour. N.V. –0--