Armenian premier: Curbs on dollarization to create favorable environment for combating inflation

04.02.2010 16:05
Armenian premier: Curbs on dollarization to create favorable environment for combating inflation

YEREVAN, February 4. /АРКА/. Curbs on dollarization will create favorable environment for combating inflation, Armenian Prime Minister Tigran Sargsyan said Wednesday in National Assembly.

“Precipitous dollarization in Armenia in 2009 up to 70% badly impacted inflation rate. We saw that economic entities converted their savings into dollars. As a result, the government’s inflation-stemming mechanisms weakened.”

The premier said that devaluation of national currency creates inflation risks in the country.

He said that the State Commission for Protection of Economic Competition would intensify its efforts, which will lessen inflation as well.

Sargsyan said that it was proposed recently to expand powers of the commission for tighten its control over large companies.

He said that price-setting process and pricing policy are under the government’s control.

The premier said that the government is doing whatever necessary to stem inflation in the country.

He said that President Serzh Sargsyan convened a meeting Wednesday to discuss the matter.

“It is not a secret that 2009 ended in high, 6.5% inflation, and inflation rate has been quite high in several years.”

Sargsyan said that the government will act in four directions.

First, the Central bank of Armenia should use monetary mechanisms.

Second, the government should apply its mechanisms to the situation.

The third direction is price administration by commissions and the government, and the fourth is improvement of market mechanisms and enhancement of competition.

The prime minister said relevant measures would be taken to curb inflation pressures. --0--


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