YEREVAN, March 12. /ARKA/. Armenia’s financial system is stable, and no signs of crisis or other threats are seen now, Martin Galstyan, a member of the board of the Central Bank of Armenia, said Tuesday in an interview with the Public Television of Armenia.
The Russian ruble has shed precipitously against the US dollar and the European currency amid collapse in oil prices after the failed negotiations over reduction of oil extraction. The dollar was traded at 75 rubles at Forex, and the Euro at more than 85 rubles. Both foreign currencies were at these levels last in 2016.
“I think that the financial system of Armenia is stable and we have no signs that the banking system is in danger, which could ruin it. There may be certain short-term problems due to these threats, but the Central Bank with all the tools is ready to confront them,” Galstyan said.
In particular, he said that the disagreement between Russia and OPEC on oil has collapsed the market and has driven oil prices down, which cannot but affect the economy.
However, in the context of Armenia, he noted that the country went through several crises and, according to the central bank, is not in the same situation as in 2008 and 2009, and the financial basis is more stable now than then.
Galstyan said that if the decline in prices in the mining market continues for a long time, then Armenia may run into problems, but current copper prices still allow Armenian companies to work profitably.
Speaking about transfers and trade with Russia, he noted that in 2008 the share of transfers in the GDP of Armenia was 14%, while in 2014, when there was another crisis, it made up 17%, and in 2019 – only 10% from GDP.
“We, being connected with Russia, have diversified our foreign exchange earnings to a certain extent in recent years. This, like our studies, gives us grounds for believing that people have formed inflationary expectations. I can assure you that the central bank has sufficient tools, including refinancing rate to resist these short-term difficulties, “said Galstyan.
He assured that at the moment there are no signs of a serious crisis, and the central bank is constantly monitoring things. –0–
