YEREVAN, December 17. / ARKA /. The exchange rate of the US Dollar in Armenia is currently overvalued ‘because of speculative currency trading and panic at the market,” but it will be declining, the chairman of the Central Bank Artur Javadyan said today at a news conference.
The dramatic depreciation of the dram continues. The exchange offices were buying the greenback today at 560 drams and selling at 580 drams, up from the official rates set by the regulator.
According to Javadyan, the real price of the USD in Armenia will be known after the causes behind its appreciation are eliminated. The head of the Central Bank refused to say when this may happen.
“The national currency will be regaining its value, but the timing depends, inter alia, on the behavior of the population in the market that creates an unreasonable panicky background”, he said.
Javadyan noted that the panic in the market is caused by deepening financial crisis in Russia, the main source of vital cash remittances to Armenia. He warned financial market players against speculative currency trading saying it can lead to large financial losses.
According to him, the situation was similar in neighboring Georgia, but there the panic passed quickly enough, and the situation has stabilized.-0-
