Expert warns against overestimating the importance of devaluating dram
30.05.2012,
15:49
An Armenian economist said today that the devaluation of the national currency, the dram, will give a boost to exports, but warned against overestimating its significance.
YEREVAN, May 30. /ARKA/. An Armenian economist said today that the devaluation of the national currency, the dram, will give a boost to exports, but warned against overestimating its significance.
Tatul Manaserian, head of Alternative think-tank, said, when speaking at a news conference at Novosti international press center that a slight devaluation of the national currency, given that the economy is steady, makes locally-manufactured goods more competitive. However, he said, one should not overestimate the significance of the devaluation of the national currency.
"If our producers fail to raise the quality of domestic products and services, the devaluation will not be a life buoy,’ he said.
According to the National Statistical Service of Armenia, exports in April this year slashed by 17.1% from a year earlier to $91.9 million (36 billion drams), while imports surged by 5.4% to $355.8 million (139.4 billion drams) resulting in a $263.9 million (103.4 billion drams) trade gap.
According to Manaserian, there are now quite good conditions for local companies to develop local processing industry and decrease the dependence on mineral extraction, as well as improve the competitive position of the economy.
Over the past two weeks the Armenian currency has lost its value against the U.S. dollar by 3.4% - from 393.41 to 406.75 drams. The highest exchange rate was registered on May 29, when the average rate rose 406.75 drams. -0-
