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CURRENCY CURVE: DRAM WEAKENING CONTINUES AMID CB'S "NEW APPROACH"
ECONOMY | 11.12.14 | 10:29
http://armenianow.com/economy/59244/armenia_dram_dollar_currency_rate
RELATED NEWS
Dollar-Dram Conundrums: CB governor warns against "speculative"
currency trading deals
The Armenian dram continued to fall against major international
currencies on the third day of application of a new "approach"
adopted by the Central Bank (CB) to stabilize the financial market.
On Monday, the CB announced that it will sell fixed amounts of dollars
to Armenian commercial banks and publicize information about those
transactions on a daily basis. Its governor Artur Javadyan said
the next day that the move is aimed at dealing with "speculative"
currency trading and will result in the stabilization of the currency
market by the end of the year.
Meanwhile, after Wednesday's trading the average exchange rate of
the Armenian dram settled at 457.31/$1, which is up by AMD 2.23 from
Tuesday. The exchange rates for one euro and one British pound were AMD
566.65 (up by AMD 4.81) and AMD 716.65 (up by AMD 4.81), respectively.
The Armenian dram that had traded at around 410 per U.S. dollar for
a durable period of time began to show signs of weakening in late
November. It lost up to 10 percent of its value in the following weeks.
Armenian authorities as well as economists explain the depreciation
of the national currency by developments in international markets,
including the appreciation of the U.S. dollar against other currencies,
the economic and financial situation in Russia caused by Western
sanctions and falling oil prices.
In his speech at a convention of the Union of Manufacturers and
Businessmen (Employers) of Armenia in Yerevan last week President
Serzh Sargsyan stressed that the devaluation of the Armenian dram
is not connected with Armenia's plans to become a member of the
Russian-led Eurasian Economic Union on January 1. He, in particular,
pointed at neighboring Georgia, which has seen an even greater fall
of its national currency, the lari, despite the fact that it pursues
integration with the European Union.
ECONOMY | 11.12.14 | 10:29
http://armenianow.com/economy/59244/armenia_dram_dollar_currency_rate
RELATED NEWS
Dollar-Dram Conundrums: CB governor warns against "speculative"
currency trading deals
The Armenian dram continued to fall against major international
currencies on the third day of application of a new "approach"
adopted by the Central Bank (CB) to stabilize the financial market.
On Monday, the CB announced that it will sell fixed amounts of dollars
to Armenian commercial banks and publicize information about those
transactions on a daily basis. Its governor Artur Javadyan said
the next day that the move is aimed at dealing with "speculative"
currency trading and will result in the stabilization of the currency
market by the end of the year.
Meanwhile, after Wednesday's trading the average exchange rate of
the Armenian dram settled at 457.31/$1, which is up by AMD 2.23 from
Tuesday. The exchange rates for one euro and one British pound were AMD
566.65 (up by AMD 4.81) and AMD 716.65 (up by AMD 4.81), respectively.
The Armenian dram that had traded at around 410 per U.S. dollar for
a durable period of time began to show signs of weakening in late
November. It lost up to 10 percent of its value in the following weeks.
Armenian authorities as well as economists explain the depreciation
of the national currency by developments in international markets,
including the appreciation of the U.S. dollar against other currencies,
the economic and financial situation in Russia caused by Western
sanctions and falling oil prices.
In his speech at a convention of the Union of Manufacturers and
Businessmen (Employers) of Armenia in Yerevan last week President
Serzh Sargsyan stressed that the devaluation of the Armenian dram
is not connected with Armenia's plans to become a member of the
Russian-led Eurasian Economic Union on January 1. He, in particular,
pointed at neighboring Georgia, which has seen an even greater fall
of its national currency, the lari, despite the fact that it pursues
integration with the European Union.