Sharp depreciation of dram blamed on slow economic recovery

YEREVAN, November 24. / ARKA /. The sharp depreciation of Armenia’s national currency, the dram, against USD and euro should be blamed on  the slow pace of economic growth and a number of external factors, according to an ex governor of the Central Bank  Bagrat Asatryan.

Speaking to a news conference today he said the drop in dram’s value is caused by objective factors – unfavorable economic situation, slow pace of economic expansion and external factors, first of all, a reduction in the amount of remittances and foreign investment.

According to Asatryan, in view of the ongoing negative trends, no one can say how much and for how long the national currency will be devaluating.

Armenia’s national currency began to lose its value in late October. According to the Central Bank, the average market exchange rate of the USD on November 21 was 418.4 drams, up 1.7% from the beginning of the month. Today the greenback traded at 435 drams. To shore up the dram the Central Bank sold $ 60.7 million in the last three weeks.

The amount of remittances sent to Armenia largely by labor migrants in Russia and other countries to their relatives at home through the banks grew by 0.36 percent in the first nine months of 2014 when compared to the same time span of 2013, to more than $1.323 billion, according to the Central Bank. -0-

spot_img

POPULAR

Strong banks’ capital and liquidity positions mitigate risks to Armenia’s financial stability – Fitch

Risks to financial stability in Armenia are mitigated by banks' strong capital and liquidity positions, according to the international ratings agency Fitch Ratings.

MONEYVAL does not pose a direct threat to the Armenian economy, but requires balanced implementation of its recommendations – economist

The recommendations of the MONEYVAL report on Armenia do not pose a direct threat to the country's economy, but their implementation must be proportionate and not create unjustified barriers for bona fide businesses and investors, according to economist Hrant Mikaelyan.

Armbanks Weekly Digest: Key Events in the Armenian Financial Market (July 6–12)

The week in Armenia's financial market was marked by accelerating annual inflation and activity in the government and corporate securities markets.

Fitch Expects Central Bank of Armenia to Raise Refinancing Rate

International rating agency Fitch Ratings expects a temporary increase in the refinancing rate in Armenia.

Fitch forecasts inflation in Armenia at 4.4% in 2026, subsequently declining to 3%

The international rating agency Fitch Ratings expects inflation in Armenia to average 4.4% in 2026, after which it will gradually return to its target level of 3%.

LATEST NEWS

spot_imgspot_imgspot_img