YEREVAN, April 27. /ARKA/. The market exchange rate of Armenia’s national currency, the dram, can devaluate and revaluate, Deputy Chairman of the Central Bank Nerses Yeritsyan said at a meeting of the parliamentary committee on financial-credit and budget issues on Tuesday.
“The Central Bank does not forecast the exchange rate of the currency. Our goal is inflation if we want to form inflationary expectations, which is the basis of stability and the main way to protect the purchasing power of the dram. The exchange rate should be more fluctuating than inflation,” Yeritsyan said.
He added that at the moment there is a revaluation of the dram at the local forex market, not a stabilization of the exchange rate. He found it difficult to note how much the dram will revalue and then devalue, since it depends on the financial market, expectations, etc.
“We can only confirm that the long term fundamental indicators – the current account and others are improving, the demand remains weak and therefore there can be no significant changes and fluctuations in the market. It is simply necessary to change and correct our approaches,” Yeritsyan said.
According to him, in general, the euro devalued against the dollar over the year by 12%, after which it revalued, and during the day fluctuations can be 6-7%.
“Any small fluctuation due to the high level of dollarization is worrying, but it should be. In the long term, this is due to economic foundations. In the long term, the main direction of growth will be to increase productivity, which suggests a revaluation of the exchange rate,”Yeritsyan said.
In late 2020, several psychological barriers were broken in the Armenian foreign exchange market. In particular, the dollar exchange rate exceeded the level of 500 drams, amounting to 500.82 drams on November 19, 2020.
The value of the American currency continued to grow, breaking the mark of 525.09 drams in mid-December 2020.
The Central Bank at the end of 2020 made interventions in the foreign exchange market in the amount of $60 million and planned new ones. The second intervention was on April 8. -0-
