YEREVAN, March 18. / ARKA /. Last week, the average exchange rate of U.S. dollar at NASDAQ OMX Armenia stock exchange rose by 0.86% to 414.29 drams as weekly trading dropped to $14.48 millions, which was 43.04% less than the previous week. The average selling rate of cash dollar rose by 0.94% on March 16 to 415.93 drams. This rapid growth of the U.S. currency was primarily due to continued demand for foreign currency on part of businesses and individuals, as well as moderate devaluation sentiments at the market. The strong position of the greenback at international currency markets is another factor enhancing its attractiveness.

Given the positive dynamic of the U.S. dollar at foreign exchange markets, we can assume that the greenback’s losses are unlikely to be significant. Besides, a new controversial plan to help Cyprus, which calls for a one-time tax on bank deposits, can also lead to large-scale purchases of U.S. currency at the international market as a safe asset.
Meanwhile, the growth of the U.S. dollar will also be assisted by increasing amount of purchases by individuals and businesses. According to the Central Bank of Armenia, last week net sales of foreign exchange by commercial banks amounted to $19.06 million, which was 4.88% higher than the previous week. According to our estimates, the average selling rate of cash dollar in Armenia this week is likely to be within the 412.0 - 417.0 drams.

The cost of euro last week in Armenia was determined by developments at the international currency market, where EUR / USD rose 0.60% to 1.3074. As a result, the average the selling rate of cash euro in Armenia last week rose by 1.37% to 545.79 drams.

The average selling rate of the Russian ruble in Armenia last week rose by 1.18% to 13.67 drams, due to some increase in its value against the U.S. dollar, as well as the depreciation of the dram.

By Mikael Verdyan, Forex Club analyst, specially for ARKA
Views of the author do not necessarily represent those of the agency