YEREVAN, February 11, /ARKA/. Manuk Herrgnyan, chairman of Economy and Values research center and director of IV Consulting, downplayed today speculations that Armenian national currency Dram may face a heavy depreciation this year.
Speaking at a news conference at Novosti international press center, he said the Central Bank was wise to stop intervening in the forex market to buy up drams and support an exchange rate at a fixed level in the first weeks of the year, that resulted in some losses.
In his opinion, the Dram may come under certain pressures later this year, but no ‘serious ‘ depreciation is expected.
On March 3, 2009 Armenia’s Central Bank let the Dram float against the dollar. In the space of a few hours on March 3, the dram went from 305 to the dollar to as low as 400 to the dollar, a loss of up to 30 percent of the currency’s value. Today one USD is traded at 378.90 Drams.
Manuk Yerganian warned also that a second wave of global crisis is likely. “Armenia’s economic dynamic this year will be contingent on global developments and the main question is will the second wave come or not,’ he said, adding that Armenia should be prepared for it by developing a set of tools that could be used to fight the second wave. -0-
