Armenian dram strengthens against USD by approx 17% in 2007
10.01.2008,
23:22
Armenian Dram strengthened against US dollar by approximately 17% in 2007, the President of the Central Bank of Armenia (CBA) Tigran Sargsian said in his exclusive interview to ARKA Agency.
YEREVAN, January 10. /ARKA/. Armenian Dram strengthened against US dollar by approximately 17% in 2007, the President of the Central Bank of Armenia (CBA) Tigran Sargsian said in his exclusive interview to ARKA Agency. In 2007 the Central Bank purchased around $350mln on the market, which is 40% more than in 2006, but the Armenian Dram went on strengthening, he said.
Yet, this process facilitated reduction of inflationary expectations and inflationary potential in the country, Sargsian said.
According to CBA President, bearing in mind quite low price flexibility on the domestic market under the conditions of outer price shocks Armenia needs to take measures to strengthen competition on the domestic market so that the strengthening of the national currency is accompanied by control over increase in prices for imported goods.
Sargsian also pointed out the importance of the fact that participants of Armenia’s financial market started offering new services to their clients. “Particularly, derivatives are offered allowing them obtaining predictable exchange rates for a small payment,” he said.
“Naturally the enterprises that operate transparently can take advantage of these services as they can sign appropriate agreements with commercial banks”, Sargsian said.
According to him, the Central Bank will be promoting introduction of a new financial market culture and the participants should learn how to control their exchange risks on their own.
During 2007 exchange rate of USD versus Armenian Dram reduced 16.31% - from 363.5Drams for $1 in the beginning of the year to 304.22Drams at the end of 2007. –0--
Yet, this process facilitated reduction of inflationary expectations and inflationary potential in the country, Sargsian said.
According to CBA President, bearing in mind quite low price flexibility on the domestic market under the conditions of outer price shocks Armenia needs to take measures to strengthen competition on the domestic market so that the strengthening of the national currency is accompanied by control over increase in prices for imported goods.
Sargsian also pointed out the importance of the fact that participants of Armenia’s financial market started offering new services to their clients. “Particularly, derivatives are offered allowing them obtaining predictable exchange rates for a small payment,” he said.
“Naturally the enterprises that operate transparently can take advantage of these services as they can sign appropriate agreements with commercial banks”, Sargsian said.
According to him, the Central Bank will be promoting introduction of a new financial market culture and the participants should learn how to control their exchange risks on their own.
During 2007 exchange rate of USD versus Armenian Dram reduced 16.31% - from 363.5Drams for $1 in the beginning of the year to 304.22Drams at the end of 2007. –0--
