YEREVAN, March 28. /ARKA/.Strong USD will not be disastrous for Armenia’s economy, but will negatively affect it, economic expert Vardan Bostanjyan implies.
Despite the forecasts of different experts, AMD average rate broke the upper line of 410-415 drams and rushed to 420 drams per $1.
Global dynamics of USD may touch off its strengthening in Armenia. In addition, the situation around Cyprus and a big demand at the Armenian market for the American currency also raise USD positions in Armenia.
Moreover, some limited remittance growth in March could encourage the market dealers to purchase USD thus pushing for hikes in the exchange rates.
“It is difficult to say whether AMD will cross the line of 420 drams per $1 or not, but anyways rise and fall of the exchange rate is a normal process,” Bostanjyan told reporters on Thursday and clarified most of financial operations in Armenia are processed in dollars.
According to the economist, the Central Bank will make all the efforts to normalize the exchange rates using all the necessary tools, such as currency interventions.
“CB can ensure stability only through coordinated work of the sectors which are in charge of monetary –credit and taxing-budget policies. CB can also use such tools as intervention,” he noted.
According to the Central Bank, the volume of transactions made by the regulator on forex market stood at $500 million at 405.45 drams per $1 in 2013.—0-
