YEREVAN, December 1. / ARKA /. Armenia’s Central Bank sold $33 million last week at the local stock exchange (72 percent of all transactions made there from November 24 to November 30) in order ‘to adjust the national currency, dram’s exchange rate.”
Armenian dram’s depreciation that began in early October accelerated in late November with the dram’s average exchange rate tumbling from 419 to 435 per dollar within hours. However, by the end of the week – on November 30- the US dollar fell to 433.69 drams, in all likelihood, resulting from the regulator’s injections in the local currency market.
The Central Bank explained the ‘adjustment’ of the dram by “recent developments in the regional and international financial markets,” saying also that its reserves are sufficient for preventing all kinds of artificial exchange rate fluctuations and ensuring financial stability.
According to the Central Bank, a stronger dollar will also increase the dram equivalents of the remittances sent home by thousands of Armenian labor migrants from Russia and other countries.
It is noteworthy that in November alone the regulator injected over $93 million in the local currency market, 98.3% of all currency exchange transactions of the month. Overall, in November alone the dram has lost 5 percent of its value against the U.S. dollar.
According to the Central Bank, it has sold about $ 237 million since the beginning of the year in the local currency market. -0-
