Newspaper: Armenian authorities may devaluate dram

02.11.2016 16:13
Newspaper: Armenian authorities may devaluate dram

YEREVAN, November 2. /ARKA/. The Armenian authorities may drive the national currency down, according to Haykakan Zhamanak (Armenian Time).

Armenia’s foreign debt has grown by $110 million over one month and by $517 million since the beginning of this year reaching $5 594 million in late September.

The authors of the publication have noticed a certain remarkable change in the state debt structure – the authorities put emphasis on building up the country’s internal, not foreign debt. Armenia’s foreign debt has grown 10% since the beginning of this year, while its domestic debt has grown by 30%.

The authors of the publication say the government has sold bonds in drams totaling AMD 1 billion, which it will buy back at high rates.

“But if the dram devaluates, these binds will be bought back at lower prices than they have been sold,” they say. “This means that the government is interested in devaluating the dram at some moment to avoid spending money on servicing the domestic debt.”

According to the National Statistical Service, the US dollar traded at 481.03 drams, on average, in Jan-Sept 2016 against 477.71 drams at the same period a year earlier. It means the Armenian national currency slid 0.7% against the dollar.

Since the beginning of this year, the Armenian dram has strengthened against the dollar. In January 2016 the dollar traded at 486.04 drams, on average, in February at 493.64 drams, in March at 486.33 drams, in April at 481.27 drams, in May at 478.37 drams, in June at 477.53 drams, in July at 476.52 drams, in August at 475.45 drams and in September at 474.10 drams.

Today the dollar is being traded at 475.14 drams, on average. --0---


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