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INEFFICIENCY OF ARMENIA'S FINANCIAL SYSTEM GIVES RISE TO HIGH INFLATION
ArmInfo
24.12.2010
ArmInfo. Inflation has become the gravest "event" of 2010. Its level
upon the results of 2010 can make up 10%, ex-Head of Armenia's Central
Bank Bagrat Asatryan said when summing up the social and economic
results of the departing year. According to him, such a high level
of inflation was fixed in Armenia for the first time in 1997 and was
caused primarily by the price liberalization process in the country
but not by pure economic factors, like in 2010.
B. Asatryan recalled that control of inflation risks is one of
the major tasks of Armenia's Central Bank. "For this purpose, CB
has been applying different tools during the year, however, their
efficiency turned out to be extremely low", Asatryan said. He drew the
journalists' attention to the fact that the country's CB is returning
to the policy it took on board in 2008-2009, when a mega-regulator
carried out currency interventions in the market. He also said the
foreign exchange reserves of Armenian CB over 10 months of 2010
reduced by $160 mln.
According to B. Asatryan, Armenia's financial system works
inefficiently. He confirmed his estimation by a number of indisputable
facts. In particular, as he said, dram revaluation in December 2010,
as compared to the similar period of 2009, revaluation of dram to
dollar made up 5,5%, to Euro - 15%, to ruble - over 7%. B. Asatryan
assures that in conditions of dram revaluation, the influence of
"external" factors on inflation, of which the economic authorities
of our country often recall and by which they explain the high level
of inflation, had to be insignificant.
To note, inflation in Armenia in November 2010 made up 1,6%, over
Jan-Nov 2010 - 7,5%, in November 2010, as compared to the similar
month of 2009 - 9,6%.
From: A. Papazian
ArmInfo
24.12.2010
ArmInfo. Inflation has become the gravest "event" of 2010. Its level
upon the results of 2010 can make up 10%, ex-Head of Armenia's Central
Bank Bagrat Asatryan said when summing up the social and economic
results of the departing year. According to him, such a high level
of inflation was fixed in Armenia for the first time in 1997 and was
caused primarily by the price liberalization process in the country
but not by pure economic factors, like in 2010.
B. Asatryan recalled that control of inflation risks is one of
the major tasks of Armenia's Central Bank. "For this purpose, CB
has been applying different tools during the year, however, their
efficiency turned out to be extremely low", Asatryan said. He drew the
journalists' attention to the fact that the country's CB is returning
to the policy it took on board in 2008-2009, when a mega-regulator
carried out currency interventions in the market. He also said the
foreign exchange reserves of Armenian CB over 10 months of 2010
reduced by $160 mln.
According to B. Asatryan, Armenia's financial system works
inefficiently. He confirmed his estimation by a number of indisputable
facts. In particular, as he said, dram revaluation in December 2010,
as compared to the similar period of 2009, revaluation of dram to
dollar made up 5,5%, to Euro - 15%, to ruble - over 7%. B. Asatryan
assures that in conditions of dram revaluation, the influence of
"external" factors on inflation, of which the economic authorities
of our country often recall and by which they explain the high level
of inflation, had to be insignificant.
To note, inflation in Armenia in November 2010 made up 1,6%, over
Jan-Nov 2010 - 7,5%, in November 2010, as compared to the similar
month of 2009 - 9,6%.
From: A. Papazian