YEREVAN, December 5. /ARKA/. Armenia’s authorities can use several instruments to make dram depreciation influence on inflation more manageable and to turn the price reductions in global markets into an advantage for the country’s economy, IMF’s resident representative to Armenia Teresa Daban Sanchez said.
Inflation levels were quite low before November, but certain depreciation of dram is seen today, Sanchez said.
No doubt, the devaluation will affect the inflation levels, but the effects can be managed, she told a press conference on Friday.
Dollar versus Armenian dram rate hit the eight-year high, having jumped by 16.6 points to 435 drams per $1 in the period from November 21 to November 24. The rate was up at 442.33 drams per $1 on December 2 and is 443.83 drams today.
The given currency adjustment is made in a transition period after which the inflation will be back to the planned limits, she said.
According to Sanchez, Armenia’s inflation is quite low and was 2.6% in November. The economic situation gives a chance to neutralize these transition effects, she said.
Sanchez pointed to serious reduction in global prices for goods, including oil.
It is necessary to ensure that this reduction is reflected also in the Armenian market, and that, for instance, gasoline and diesel prices go down, the IMF permanent representative said.
According to Armenia’s National Statistical Service, gasoline prices fell by 3.3% in the country in November 2014, compared to the month before and by 6.1% if compared to November last year.
The 2014 budgeted inflation level in Armenia is 4% (±1.5%). -0-
