YEREVAN, October 23. /ARKA/. The recent revaluation of the Armenian dram was due to the improvement of the external account of Armenia’s payment balance, Smvel Chzmachyan, the head of the Union of Banks of Armenia, said in an interview with Zhamanak (Time).
He told the newspaper that the external balance has been improved by the changes made in Armenia’s foreign trade structure, and this has made positive impacts on the national currency.
“The dwindling inflow of individual money transfers to Armenia makes pressure on the Armenian dram, but at the same time, in my opinion, this effect is offset by a significant reduction in import volumes, which means that outflow of foreign currencies from the country dwindled as well – the foreign currency cash remains in Armenia and demand for it didn’t rise as exports, the key source of foreign currency inflow to the country, grew this year, compared with the previous year,” he said.
Explaining the situation, Chzmachyan said that as a result, the current external payments balance neutralizes the factor of reduction of money transfers to Armenia.
According to the National Statistical Service of Armenia, exports grew 0.5% over the first eight months of this year, while imports contracted by 26.3%. Remittances fell 37% or by $350 million.
“The amounts transferred to the country shrank by $350 million, while cuts in imports saved $750 million for the country – it means the adverse factors impacting the Armenian national currency were neutralized by positive factors,” Chzmachyan said in his interview.
Seasonal factors, good crops and a significant industrial growth had favorable impacts on the Armenian dram as well, he said.
As another factor, he pointed out the U.S. Federal Reserve’s decision to leave the key rate unchanged.
In October, the Armenian dram showed signs of stability after fluctuations that were shaking Armenia’s forex market throughout several months.
Today the dollar is traded at AMD 470.07 drams. —-0—
