Central bank- revaluation of dram causes no concern

08.06.2016 15:22
Central bank- revaluation of dram causes no concern

YEREVAN, June 8. /ARKA/. The chairman of the Armenian Central Bank Artur Javadyan downplayed Tuesday concerns that the revaluation of the national currency, the dram, may cause damage to the economy.

Speaking at a parliament discussion on the execution of the 2015 state budget, Javadyan said the revaluation of the Armenian dram is natural and gives no cause for concern.

According to him, the situation in the market is of no concern, and all the processes are quite natural in view of reducing current account deficit which is due to the decline in  imports and a sharp increase in exports in the first months of the year.

He said the Central Bank has no influence on the revaluation of the dram, and is taking no steps to curb its exchange rate intervening  only in the event of dramatic fluctuations.

According to him, the Central Bank had to intervene twice this year - in late January and early February, when the regulator bought largely US dollars.

He noted that this type of behavior is quite natural for such a "young" currency as the Armenian dram, adding that revaluation helps it "earn" confidence. Javadyan said since 2009 the Armenian currency has lost 60% of its value.

According to the National Statistical Service, the average exchange rate of USD in the first quarter of 2016 was 488.67 against 477.26 drams in  the same period of 2015. Thus, the Armenian dram depreciated by 2.3% in the first quarter of 2016. Today, the US dollar is trading at 478.82 drams. -0-

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