Ex-governor of Central Bank says large-scale interventions are impermissible with floating exchange rate

YEREVAN, December 25. / ARKA /. A former head of Armenia’s Central Bank, Bagrat Asatryan, has  disapproved today of Central Bank’s decision to respond to depreciation of the national currency throughout late November and December by large-scale interventions ‘because Armenia had shifted to the floating exchange rate of its currency back in 2009 that appeared to be a salvage for its economy.’

He said Central Bank’s international reserves have slashed this year by $ 714 million and a sizeable amount was sold to prevent the dram from further falling.

“It was clear from the outset that it was impossible to stop the weakening of the dram which has been losing its value throughout the year. The regulator’s interventions held it back for some time only,” he said.

Armenia’s international reserves stood at $1,537.6 billion in late November, slashing by $714 million from the beginning of the year.

According to the Central Bank, it has sold this year $236.4 million at the local forex and has bought $50.15 million.-0-

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