Central bank injects $150 million this year into Forex market to curb inflationary pressures: former CB governor

YEREVAN, November 23, /ARKA/. A former governor of Armenia’s Central Bank, Bagrat Asatrian, criticized Monday the Central Bank for injecting $150 million this year into forex market in a bid to curb inflationary pressures, saying as a result the country’s external reserves have slashed from $2 billion to $1.850 billion and the national currency, the Dram, has gained 10% over USD and Euro affecting the exports.

Speaking to a news conference he said Armenia is showing the worst export growth rates among some other former Soviet republics making the Commonwealth of Independent States (CIS).

According to the Central Bank data, the money base of Armenia in late September slashed by 0.1% or 618 million Drams as opposed to August to 438.4 billion Drams, while the money supply amount in late September rose by 0.8% or 6.7 billion Drams from August to 810.2 billion Drams.

Last week the average weighted exchange rate of USD at NASDAQ OMX Armenia stock exchange dropped by 0.93% to 361.29 Drams.

According to analysts, the drop was due to Central Bank’s intervention which seeks to protect the Dram from a deeper fall. Experts from Forex Club say the USD will be trading next week at 362 – 365 Drams. ($1 – 361.05 Drams). -0-

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