YEREVAN, December 11. / ARKA /. After a period of devaluation of Armenian national currency, the dram, in May and June, now the situation in the local currency market  has stabilized thanks to the efforts of the Central Bank,  IMF Resident Representative in Armenia, Guillermo Tolosa, told a news conference today.

He commended the Central Bank for  non-intervention in the process of devaluation of the national currency in the first stage, but added that the regulator could not allow the process to lead to the market destabilization.

"That was why the Central Bank began to sell the currency to reduce pressure on the Armenian dram. To this end, international reserves were used, but later the Central Bank bought out part of the  sold currency ",  he said.

Mr. Tolosa said  devaluation of the dram and subsequent developments in the market were due to several reasons, including increased demand for foreign currency due to lower levels of foreign direct investment.

He said the dwindling flow of tourist from Iran also had an a negative influence on the market and besides, some of its members became nervous and began to buy dollars, expecting a stronger devaluation. Some of these players were later forced to sell the purchased currency, sustaining losses.

Tolosa said that the events of May and June are an indication that sharp fluctuations in the exchange rate of the currencies are in the past.
From early May to July 19, the dram depreciated against the U.S. dollar by 19.8 points, or about 5% (from 392.06 to 411.89 drams). The highest rate was reported on July 4, when the greenback traded at 418.66 drams. The average exchange rate in III quarter was 410.66 drams. -0-