Mon, 8 September
19.1 C
Yerevan
USD: 384.03 RUB: 4.80 EUR: 443.29 GEL: 142.29 GBP: 510.11

Economist: Armenian dram devaluation inevitable

YEREVAN, August 27. /ARKA/. Armenia’s national currency will inevitably go down against the US dollar, Vardan Bostanjyan, an economist, told journalists on Thursday.

He finds it impossible to retain stability in prices only by the central bank’s efforts and its monetary policy instruments – an appropriate tax and budgetary policy of the government is needed for that.

“The central bank and the government’s steps should be coordinated,” Bostanjyan said. “The lack of one of these components load the other with the whole stabilization burden.”

Bostanjyan pointed out that Armenia’s economy is dollarized, and, in addition, it heavily depends on Russia’s economy. That is why Russia’s all adverse developments strike hard at Armenia, which finds itself in more vulnerable position.

“Now we perceive everything through the lens of Armenia’s financial market, but it should be understood that it is increasingly becoming difficult to control economic processes because of various objective and subjective factors,” he said.

As a whole, he said, adverse processes strengthened in the world by the end of the 20th century and in the beginning of the 21st century, confrontation between the East and the West escalated, financial flows underwent deformation and illegal migration intensified. As a result, the global economic system is deforming, and this impacts Armenia.

The US dollar fell 0.79 percentage points against the Armenian dram on Thursday, compared with Wednesday, and traded at 484.7 drams, on average, at Armenia’s forex market.
On August 24, the US dollar leapt 5.73 percentage points against the Armenian dram and traded at 483.43 drams, on average, at Armenia’s forex market, and the European currency soared 16.56 percentage points to 554.83 drams per one euro.

The dram devaluation is triggered by adverse developments at world forex markets.
The Armenian national currency was driven down not only by outside factors, but also by inside things –Armenia’s foreign trade turnover shrank 20.6% over the first half of this year to $2 186 million and money transfers contracted by 30.5% to $537.1 million. —-0—–

spot_img

POPULAR

ACBA Federation promotes rural tourism in Armenia: the success story of Manana guest house (video)

Four years prior, Astghik Ghazaryan, a professional educator, established the Manana guest house in her hometown of Marmarik.

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Freedom Broker Armenia ranks as one of the largest taxpayer in Armenia

Freedom Broker Armenia has been recognized as one of the largest taxpayers in the country, underscoring its leadership in the investment sector and commitment to sustainable business practices.

Armenia to receive 45.3 million euros from ADB to improve healthcare quality

Armenia will receive 45.3 million euros from the Asian Development Bank (ADB) to improve healthcare quality, said First Deputy Minister of Health of the Republic of Armenia Lena Nanushyan during a meeting of the parliamentary standing committee on financial, credit and budgetary issues.

Cryptocurrency in Armenia: Stringent Regulations and Elevated Expectations

The future of cryptocurrencies in Armenia was a topic of discussion among participants at the Armenian Cryptocurrency Assets Forum, which recently took place in Yerevan.

LATEST NEWS

spot_imgspot_imgspot_img