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ARMENIAN CB PUBLISHES CURRENCY MARKET ANALYSIS
ARKA
March 11, 2008
YEREVAN, March 11. /ARKA/. The Central Bank of Armenia (CBA) has
published the results of an analysis of Armenia's currency market,
which show a USD downfall on November 23-25, 2007.
The CBA press service reports that the downfall recorded in Armenia
on November 23-25 (days off) resulted from speculations by some banks
and exchange offices, as well as from large-scale cash transactions
effected by a number of businessmen. The report says that some
violations were revealed, which forced the CBA to apply sanctions
against the violator banks and exchange offices.
Specifically, during the period under review, the lowest purchase rate
was set by the Prometey Bank - AMD 280/$1. The too low exchange rate
set by the bank's branch on Tigran Mets avenue caused the citizens
wishing to exchange US dollars at a higher exchange rate to rush
to the nearby Ardshininvestbank office, which resulted in a long
queue there. In its turn, the Ardshinivestbank took advantage of
the situation and purchased US dollars at an exchange rate of 291
AMD/$1. One more bank, HSBC Bank Armenia, which is located at a
distance from the Ardshininvestbank, set an exchange rate of 300
AMD/$1, which formed a much longer queue.
The CBA conducted inspections at the Prometey Bank, focusing attention
on currency purchase and sale transactions. The inspections revealed
violations of relevant regulations, and the CBA applied sanctions
against the bank.
Specifically, the work of one of the branches of Prometey Bank was
suspended - the branch was most active in the purchase and sale
of currency.
As regards the bank's other branches, Prometey Bank was ordered to
strengthen control over their activities. In case they failed to
properly execute the bank's instructions, their activities were to
be suspended within two months. The CBA also instructed the Prometey
Bank to revise its activities and present a new program, which will
not envisage a policy of making currency purchase and sale one of
the priorities, which will reduce the share of incomes from these
operations in the bank's total incomes.
The CBA also found that banks, particularly the Armeconombank and
the Araratbank, as well as related clients (individuals) effected
exchange transactions with US dollars. Some of the persons are known
to have been workers of exchange offices. The persons in question were
effecting repeated transactions on November 23-25. The CBA provided
information on them to Armenia's law-enforcement bodies.
On November 19-23, 2007, the CBA also recorded large-scale monetization
transactions with US dollars - up to $10mln. The information at the
CBA's disposal does not make it possible to know what happened with
$3mln later.
The CBA reports that organizations carrying out large-scale business
activities and served by Unibank and HSBC Bank Armenia effected
large-scale transactions involving the deposition and withdrawal
of US dollars. The banks in question also recorded large-scale
transactions involving the deposition and withdrawal of foreign
exchange in cash by clients. The CBA reports that the operations in
question are most likely intended for serving the shadow turnover of
the business organizations. The CBA presented the information to the
RA Customs Service.
During the period under review, the lowest exchange rate was set by the
exchange offices of the Armenia hotel complex (274 AMD/$1), Keramika
(275 AND/$1), PSR (Ani hotel) (275 AND/$1). According to the CBA,
the companies in question have always set low exchange rates on the
market. As regards other exchange offices, the Valletta Ltd set the
lowest exchange rate - 276 AMD/$1.
Inspections conducted by the CBA revealed numerous violations committed
by the Valletta Ltd and a number of other exchange offices. Among
the violations are the failure to issue receipts, deviations of the
cash balance from the calculated amounts. The CBA imposed fines for
the violations - 50,000 AMD to 75,000 AMD. The CBA also intends to
invalidate the licences issued to seven exchange offices.
ARKA
March 11, 2008
YEREVAN, March 11. /ARKA/. The Central Bank of Armenia (CBA) has
published the results of an analysis of Armenia's currency market,
which show a USD downfall on November 23-25, 2007.
The CBA press service reports that the downfall recorded in Armenia
on November 23-25 (days off) resulted from speculations by some banks
and exchange offices, as well as from large-scale cash transactions
effected by a number of businessmen. The report says that some
violations were revealed, which forced the CBA to apply sanctions
against the violator banks and exchange offices.
Specifically, during the period under review, the lowest purchase rate
was set by the Prometey Bank - AMD 280/$1. The too low exchange rate
set by the bank's branch on Tigran Mets avenue caused the citizens
wishing to exchange US dollars at a higher exchange rate to rush
to the nearby Ardshininvestbank office, which resulted in a long
queue there. In its turn, the Ardshinivestbank took advantage of
the situation and purchased US dollars at an exchange rate of 291
AMD/$1. One more bank, HSBC Bank Armenia, which is located at a
distance from the Ardshininvestbank, set an exchange rate of 300
AMD/$1, which formed a much longer queue.
The CBA conducted inspections at the Prometey Bank, focusing attention
on currency purchase and sale transactions. The inspections revealed
violations of relevant regulations, and the CBA applied sanctions
against the bank.
Specifically, the work of one of the branches of Prometey Bank was
suspended - the branch was most active in the purchase and sale
of currency.
As regards the bank's other branches, Prometey Bank was ordered to
strengthen control over their activities. In case they failed to
properly execute the bank's instructions, their activities were to
be suspended within two months. The CBA also instructed the Prometey
Bank to revise its activities and present a new program, which will
not envisage a policy of making currency purchase and sale one of
the priorities, which will reduce the share of incomes from these
operations in the bank's total incomes.
The CBA also found that banks, particularly the Armeconombank and
the Araratbank, as well as related clients (individuals) effected
exchange transactions with US dollars. Some of the persons are known
to have been workers of exchange offices. The persons in question were
effecting repeated transactions on November 23-25. The CBA provided
information on them to Armenia's law-enforcement bodies.
On November 19-23, 2007, the CBA also recorded large-scale monetization
transactions with US dollars - up to $10mln. The information at the
CBA's disposal does not make it possible to know what happened with
$3mln later.
The CBA reports that organizations carrying out large-scale business
activities and served by Unibank and HSBC Bank Armenia effected
large-scale transactions involving the deposition and withdrawal
of US dollars. The banks in question also recorded large-scale
transactions involving the deposition and withdrawal of foreign
exchange in cash by clients. The CBA reports that the operations in
question are most likely intended for serving the shadow turnover of
the business organizations. The CBA presented the information to the
RA Customs Service.
During the period under review, the lowest exchange rate was set by the
exchange offices of the Armenia hotel complex (274 AMD/$1), Keramika
(275 AND/$1), PSR (Ani hotel) (275 AND/$1). According to the CBA,
the companies in question have always set low exchange rates on the
market. As regards other exchange offices, the Valletta Ltd set the
lowest exchange rate - 276 AMD/$1.
Inspections conducted by the CBA revealed numerous violations committed
by the Valletta Ltd and a number of other exchange offices. Among
the violations are the failure to issue receipts, deviations of the
cash balance from the calculated amounts. The CBA imposed fines for
the violations - 50,000 AMD to 75,000 AMD. The CBA also intends to
invalidate the licences issued to seven exchange offices.