YEREVAN, September 16, /ARKA/. The Central Bank of Armenia (CBA) pursues inflation targeting

policy which means that exchange rate is determined by supply and demand on the market, EBRD President Odile Renaud-Basso said in an exclusive interview to Novosti-Armenia news agency. 

She said recent appreciation is due to high inflow of foreign currency in the country, and most probably is temporary.

The fact that foreign reserves increased by almost US$ 600 million during the last six months shows that CBA actively intervenes in the market, and is purchasing great amounts of foreign currency.

At the same time, exchange rate appreciation contains inflationary pressure from imported prices. -0-