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CBA CHAIRMAN: CENTRAL BANKS SHOULD ENSURE FINANCIAL STABILITY OF THE
NATIONAL FINANCIAL SYSTEM
YEREVAN, June 6. /ARKA/. The sphere of activity of central banks
should be enlarged to ensure financial stability, and moreover,
financial security of the national financial system, as stated the CBA
Chairman Tigran Sargsyan at the 14th International Bank Congress in
Saint-Petersburg. According to him, the policy of CBA should be
independent, clear and predictable aiming at stabilizing prices. Other
parameters should form under the influence of market mechanisms.
"Central banks should be active introducers of reforms in the
financial sector, have constitutional and legislative basis of
independence", he said. He emphasized that central banks should
function beyond the frames of political cycles and current political
processes. "Superiority of political powers over CB should be
excluded", Sargsyan said. According to him, the openness of the
policy, perspicuity of the logic of activities of CB guarantees market
discipline, ensures clearness and predictability of the events,
forming the expectations of subjects in the market, in the base of
which is the factor of stability and predictability. "This increases
trust in CB facilitating balance", he said.
Sargsyan participated in the work of the XIV International Bank
Congress in Saint Petersburg on June 1-5, 2005. The subject of the
congress was "Banks, Regulation, Economy". Sargsyan introduced his
report on Monetary Policy, Currency Regulation and Bank Control in the
Conditions of Appreciation of National Currency. A.H. -0--
NATIONAL FINANCIAL SYSTEM
YEREVAN, June 6. /ARKA/. The sphere of activity of central banks
should be enlarged to ensure financial stability, and moreover,
financial security of the national financial system, as stated the CBA
Chairman Tigran Sargsyan at the 14th International Bank Congress in
Saint-Petersburg. According to him, the policy of CBA should be
independent, clear and predictable aiming at stabilizing prices. Other
parameters should form under the influence of market mechanisms.
"Central banks should be active introducers of reforms in the
financial sector, have constitutional and legislative basis of
independence", he said. He emphasized that central banks should
function beyond the frames of political cycles and current political
processes. "Superiority of political powers over CB should be
excluded", Sargsyan said. According to him, the openness of the
policy, perspicuity of the logic of activities of CB guarantees market
discipline, ensures clearness and predictability of the events,
forming the expectations of subjects in the market, in the base of
which is the factor of stability and predictability. "This increases
trust in CB facilitating balance", he said.
Sargsyan participated in the work of the XIV International Bank
Congress in Saint Petersburg on June 1-5, 2005. The subject of the
congress was "Banks, Regulation, Economy". Sargsyan introduced his
report on Monetary Policy, Currency Regulation and Bank Control in the
Conditions of Appreciation of National Currency. A.H. -0--