Dollar Reaches 500 Drams

YEREVAN (Armenpress) – In the course of the last week the exchange rate of the Dollar against the Armenian Dram went up by as much as 25 points. On Thursday the Dollar was sold for 490–and bought for 500 Drams. According to the Central Bank–exchange rate fluctuations are conditioned by many factors–such as low tax entries–slowing down of the privatization process–the import/export ratio (in January $9 million in exports and $49 million in imports)–low levels of domestic savings–among other factors.

According to Tigran Sarkissian–President of Armenian Banks Association–the existing economic problems undoubtedly affect the exchange rates–and because of the small size of the economic market in Armenia–a small combination of factors will influence the exchange rate greatly.

Sarkissian also did not dismiss the possibility of Armen Sarkissian’s resignation to be an influential factor in this recent plunge of the Dram.

According to the Sarkissian–political events do condition the exchange rate –in that banks are more careful in their transactions and they slow the process of currency sales. Another reason for the fluctuation is the postponing of the ESAF Loan by the International Monetary Fund (IMF) until May.

Surprisingly–according to experts–exchange rate fluctuations do not affect prices–as exchange rates and inflation are not directly interrelated. the fluctuations do not affect prices.

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