Dram stability cost Armenia some $150 million – Tavadyan
01.12.2014,
12:42
The stability of the national currency cost Armenia some $150 million, said Professor of Economics Ashot Tavadyan, head of chair of mathematical modeling at the Armenian State University of Economics.
YEREVAN, December 1. /ARKA/. The stability of the national currency cost Armenia some $150 million, said Professor of Economics Ashot Tavadyan, head of chair of mathematical modeling at the Armenian State University of Economics.
The dollar versus dram exchange rate rocketed recently and hit the eight-year-maximum, having gone up by 16.6 points to 435 drams per $1 just in a couple of days, from November 21 to November 24.
The Central Bank of Armenia sold about $60 million dollars in the last three weeks only, Tavadyan told a press conference on Saturday. During the last year about $200 million was sold and some $50 million purchased, which means the stabilizing of the currency cost the government $150 million, he said.
Tavadyan said smooth depreciation is useful to the economy and the central bank should have prevented the sharp devaluation that may lead to financial shocks and open the doors to speculations.
Currency adjustments are a continuous process and are not a matter of just one day, if one wants to avoid spending huge funds from the reserve, he said.
“Why dram should be strengthened amid ruble depreciation?” Tavadyan asked.
Another aspect, according to the economist, is that business entities adapt better in case of small currency fluctuations that open up no opportunity for widespread speculations.
The Central Bank said in their comments that the currency adjustment was made to help increase competitiveness of the national exports and safeguard the forex reserves. –0--
The dollar versus dram exchange rate rocketed recently and hit the eight-year-maximum, having gone up by 16.6 points to 435 drams per $1 just in a couple of days, from November 21 to November 24.
The Central Bank of Armenia sold about $60 million dollars in the last three weeks only, Tavadyan told a press conference on Saturday. During the last year about $200 million was sold and some $50 million purchased, which means the stabilizing of the currency cost the government $150 million, he said.
Tavadyan said smooth depreciation is useful to the economy and the central bank should have prevented the sharp devaluation that may lead to financial shocks and open the doors to speculations.
Currency adjustments are a continuous process and are not a matter of just one day, if one wants to avoid spending huge funds from the reserve, he said.
“Why dram should be strengthened amid ruble depreciation?” Tavadyan asked.
Another aspect, according to the economist, is that business entities adapt better in case of small currency fluctuations that open up no opportunity for widespread speculations.
The Central Bank said in their comments that the currency adjustment was made to help increase competitiveness of the national exports and safeguard the forex reserves. –0--
