YEREVAN, April 28. /ARKA/. The steps being taken by the central bank have favorable impacts of Armenia’s financial system, Valery Ovsyannikov, general director of VTB Bank (Armenia) and chairman of its directorial board, said Wednesday in Novosti International Press Center.
“The central bank bolstered commercial banks enabling them to lending drams and continue their retail business,” he said.
Ovsyannikov finds the decision to let drams into the market absolutely reasonable.
“I am not ready now to predict how much the dram will cost, but I think the dram is in the market niche now,” he said.
On March 3, 2009, the Central Bank of Armenia returned to the floating exchange rate policy.
An average exchange rate ranged between 360 and 380 drams per one US dollar in 2009, just as specialists at the central bank predicted.
Ovsyannikov also thinks introduction of a new currency position norm is absolutely normal.
He welcomed the government and the central bank’s market dedollarization programs.
Tightened capital adequacy norms took force on April 14. “These norms will make it possible to inject extra drams in the economy, since banks should do their business in drams. Many banks are still afraid of this, since exchange rate outlooks are obscure,” Ovsyannikov said.
He assumed that the national currency would continue strengthening.
VTB Bank Armenia (Armenian Savings Bank before June 2006) joined VTB Group in April 2004.
VTB holds 100% of shares of VTB Bank (Armenia).-0—
