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DOLLAR GROWS AGAINST IMPORTERS
Naira Hayrumyan
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy26544.html
Published: 16:35:22 - 13/06/2012
Apparently, the dollar rate in Armenia is growing with the blessing
of the power. As the famous businessman Hrayr Hovnanian said if the
government didn't interfere, the prices would have soared after the
dollar rate had reached AMD 415 from 370 per dollar.
Does Armenia benefit from the growth of the dollar ? According to
economists, dollar is not growing. It is the real rate which is about
450 drams for one dollar.
What causes dollar abnormality in Armenia? It is noy clear.
Importer-monopolists buy cheap dollars in Armenia and use them abroad
and gain huge profit on the difference of the exchange rate. Since
the greater share of the Armenian mutated economy is import.
Why has the government decided to cut the profits of importers? Under
the influence of international organizations which point out to
this circumstance? Most probably, the government has realized that
no one will invest in export-oriented production and in the domestic
economy unless it is possible to obtain surplus profits. Apparently,
they thus decided to let the dollar rate grow.
As to the importers, most probably they have somehow come to terms.
Perhaps, they were "pledged" a law on super profit or enforcement of
the applicable laws to deal with growth of prices.
Import is the bugbear of the Armenian economy. News.am calculated that
the importers of Brazilian pork which costs 3500 drams in Armenia
receive AMD 2000 net profit from each kilogram. In other countries,
it is clear robbery, while here such importers boost prices when the
dollar rate grows.
Why would anyone invest in local pig farms when it is possible to
make a fortune by importing pork? Meanwhile, net profit from locally
produced pork would be AMD 1000.
But the growth of the dollar and backstage pressure on importers do
not solve economic problems. All this must be accompanied by public
actions such as legislation boosting exports, publication of the true
amounts of profits of importers and taxes they pay. But the main thing
is the adoption of a law on excess profit to introduce progressive
tax. It would be nice to use price limits in such priority areas
as agriculture.
Because the importers can pay taxes, as Samvel Alexanyan does, the
fifth or sixth in the list of taxpayers. But by doing so he does not
cease to rob us, obtaining fabulous profits at our expense.
From: Emil Lazarian | Ararat NewsPress
Naira Hayrumyan
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy26544.html
Published: 16:35:22 - 13/06/2012
Apparently, the dollar rate in Armenia is growing with the blessing
of the power. As the famous businessman Hrayr Hovnanian said if the
government didn't interfere, the prices would have soared after the
dollar rate had reached AMD 415 from 370 per dollar.
Does Armenia benefit from the growth of the dollar ? According to
economists, dollar is not growing. It is the real rate which is about
450 drams for one dollar.
What causes dollar abnormality in Armenia? It is noy clear.
Importer-monopolists buy cheap dollars in Armenia and use them abroad
and gain huge profit on the difference of the exchange rate. Since
the greater share of the Armenian mutated economy is import.
Why has the government decided to cut the profits of importers? Under
the influence of international organizations which point out to
this circumstance? Most probably, the government has realized that
no one will invest in export-oriented production and in the domestic
economy unless it is possible to obtain surplus profits. Apparently,
they thus decided to let the dollar rate grow.
As to the importers, most probably they have somehow come to terms.
Perhaps, they were "pledged" a law on super profit or enforcement of
the applicable laws to deal with growth of prices.
Import is the bugbear of the Armenian economy. News.am calculated that
the importers of Brazilian pork which costs 3500 drams in Armenia
receive AMD 2000 net profit from each kilogram. In other countries,
it is clear robbery, while here such importers boost prices when the
dollar rate grows.
Why would anyone invest in local pig farms when it is possible to
make a fortune by importing pork? Meanwhile, net profit from locally
produced pork would be AMD 1000.
But the growth of the dollar and backstage pressure on importers do
not solve economic problems. All this must be accompanied by public
actions such as legislation boosting exports, publication of the true
amounts of profits of importers and taxes they pay. But the main thing
is the adoption of a law on excess profit to introduce progressive
tax. It would be nice to use price limits in such priority areas
as agriculture.
Because the importers can pay taxes, as Samvel Alexanyan does, the
fifth or sixth in the list of taxpayers. But by doing so he does not
cease to rob us, obtaining fabulous profits at our expense.
From: Emil Lazarian | Ararat NewsPress