Armenia’s central bank sees no need to interfere in exchange rate fluctuations

28.10.2020 17:30
Armenia’s central bank sees no need to interfere in exchange rate fluctuations

YEREVAN, October 28. /ARKA/. The Central Bank of Armenia has not carried out interventions over the past month and does not see the need to interfere in the fluctuation of the exchange rate, Central Bank Chairman Martin Galstyan said Tuesday at a press conference.

He recalled that the main goal of the regulator is the stability of prices and finances, and the stability of the dram and its rate are interesting only to the extent associated with these phenomena.

“At the moment, the central bank does not see the expediency of intervening in the market, since the existing developments - a slight increase or decrease - are natural, and there is no need for other intervention from the central bank. More than that - over the past month, while the war is going on, the central bank did not carry out interventions,” Galstyan said.

He noted that the target indicator, after which the regulator could consider it necessary to intervene in the market processes, as such, is absent.

“We are monitoring the inflation rate, and it is in the zone that is in a manageable interval, and therefore we are calm,” Galstyan said.

According to the Central Bank, deflation in Armenia was 0.2% in September, compared to inflation of 0.2% in the same month a year before. The 12-month inflation was 1.4%, while 12-month natural inflation slightly increased, amounting to 1.3%. According to the Central Bank's estimates, inflation will gradually increase over the forecast horizon, stabilizing around the 4% target by the end of the period.

In the government budget of Armenia for 2020, inflation is projected at 4% (± 1.5%). -0-

Tags: , , Новости Армении АМИ Новости-Армения

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