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CENTRAL BANK OF ARMENIA TO KEEP ENSURING 3-% INFLATION AND TO MAINTAIN
FLOATING EXCHANGE RATE REGIME
YEREVAN, June 20. /ARKA/. The monetary policy pursued by the Central
Bank of Armenia is to be focused on ensuring 3-percent inflation and
also to retain floating currency exchange rate regime, the CBA
Vice-Chairman Arthur Javadyan said speaking at the 8th conference of
the Union of Banks of Armenia. In his words, such a policy will be due
to tightening competition between Armenian economy and the outside
world. "If the CBA try to devaluate national currency artificially,
this will be done at the expense of people. If there are economic
grounds for national currency revaluation, the CBA any resistance will
lead to inflation that will strike hard at low-income strata of the
republic population", Javadyan said. In his words, the international
experience showed that the countries' bids to strengthen their
national currencies as a rule fail", Javadtyan said. In his opinion,
reforms aimed at increasing the enterprises' efficiency, ensuring
transparency and riding the market of unhealthy elements need to be
implemented in the real sector of the republic's economy. At the same
time, he stressed that devaluation policy will lead to funding
uncompetitive, unsustainable in the world market companies at the
expense of the population.
"Economy entities have to enhance their competitive ability through
increasing productivity by means of applying new technologies, not by
changing currencies exchange rate. M. V. - 0---
FLOATING EXCHANGE RATE REGIME
YEREVAN, June 20. /ARKA/. The monetary policy pursued by the Central
Bank of Armenia is to be focused on ensuring 3-percent inflation and
also to retain floating currency exchange rate regime, the CBA
Vice-Chairman Arthur Javadyan said speaking at the 8th conference of
the Union of Banks of Armenia. In his words, such a policy will be due
to tightening competition between Armenian economy and the outside
world. "If the CBA try to devaluate national currency artificially,
this will be done at the expense of people. If there are economic
grounds for national currency revaluation, the CBA any resistance will
lead to inflation that will strike hard at low-income strata of the
republic population", Javadyan said. In his words, the international
experience showed that the countries' bids to strengthen their
national currencies as a rule fail", Javadtyan said. In his opinion,
reforms aimed at increasing the enterprises' efficiency, ensuring
transparency and riding the market of unhealthy elements need to be
implemented in the real sector of the republic's economy. At the same
time, he stressed that devaluation policy will lead to funding
uncompetitive, unsustainable in the world market companies at the
expense of the population.
"Economy entities have to enhance their competitive ability through
increasing productivity by means of applying new technologies, not by
changing currencies exchange rate. M. V. - 0---