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GREENBACK'S KING AGAIN: ARMENIAN BANKS LIMIT HARD CURRENCY SALES AS DRAM PLUNGES AGAIN
Economy | 17.12.14 | 13:00
Most commercial banks and exchange offices in Yerevan did not sell
hard currency to citizens on Tuesday evening after a day of what could
be described as 'panic foreign exchange buying'. Some businesses,
meanwhile, responded to the turbulence on the financial markets by
stopping their trading in anticipation of stability.
Some stores and supermarkets in Armenia set limits on purchases of
certain basic foodstuffs, others were changing price tags several
times during the day revising the prices upwards.
According to the CB rates released for Tuesday, the dram fell by an
average of 18.56 points to stand at 490.34AMD/1USD, while the fall
of the Armenian currency against the Euro and the British pound made
28.25 and 29.77 points, respectively (614.20/1 EUR and 770.32/1 GBP).
The selling price of the US dollar at some exchange offices in Yerevan
on late Tuesday reached 575 AMD, but currency traders said they did
not have any dollars to sell. Meanwhile, some banks purchased dollars
from the population for up to 535 AMD/$1.
During the day commercial banks sold limited amounts of hard currency
only to their customers. Queues were observed at bank offices during
the day, with some people angered by the situation when they literally
saw the dram exchange rate falling on the display as they stood in
the queue waiting for their turn to buy some foreign currency.
The current depreciation of the dram started in late November. Before
that, for a durable period of time the Armenian national currency
traded at around 410-415 AMD against the dollar.
On December 8, the CB declared a "new approach" to stabilizing the
national currency as it began selling fixed amounts of dollars to
Armenian commercial banks on a daily basis. The financial regulator
said the move was aimed at dealing with "speculative" currency trading
and would result in the stabilization of the currency market by the end
of the year. For four days the CB sold $6 million on a daily basis,
but on Monday and Tuesday it reduced the amount of its daily sales
to $4 million.
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. Another major factor cited by
economists these days is panic among businesses and the population
anticipating a serious shortage of hard currency in the near future.
Neither the CB nor the government made any statements directly
concerning the situation on the currency market as of early Wednesday.
http://armenianow.com/economy/59420/armenia_currency_exchange_rate_dram_dollar_markets _depreciation
Economy | 17.12.14 | 13:00
Most commercial banks and exchange offices in Yerevan did not sell
hard currency to citizens on Tuesday evening after a day of what could
be described as 'panic foreign exchange buying'. Some businesses,
meanwhile, responded to the turbulence on the financial markets by
stopping their trading in anticipation of stability.
Some stores and supermarkets in Armenia set limits on purchases of
certain basic foodstuffs, others were changing price tags several
times during the day revising the prices upwards.
According to the CB rates released for Tuesday, the dram fell by an
average of 18.56 points to stand at 490.34AMD/1USD, while the fall
of the Armenian currency against the Euro and the British pound made
28.25 and 29.77 points, respectively (614.20/1 EUR and 770.32/1 GBP).
The selling price of the US dollar at some exchange offices in Yerevan
on late Tuesday reached 575 AMD, but currency traders said they did
not have any dollars to sell. Meanwhile, some banks purchased dollars
from the population for up to 535 AMD/$1.
During the day commercial banks sold limited amounts of hard currency
only to their customers. Queues were observed at bank offices during
the day, with some people angered by the situation when they literally
saw the dram exchange rate falling on the display as they stood in
the queue waiting for their turn to buy some foreign currency.
The current depreciation of the dram started in late November. Before
that, for a durable period of time the Armenian national currency
traded at around 410-415 AMD against the dollar.
On December 8, the CB declared a "new approach" to stabilizing the
national currency as it began selling fixed amounts of dollars to
Armenian commercial banks on a daily basis. The financial regulator
said the move was aimed at dealing with "speculative" currency trading
and would result in the stabilization of the currency market by the end
of the year. For four days the CB sold $6 million on a daily basis,
but on Monday and Tuesday it reduced the amount of its daily sales
to $4 million.
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. Another major factor cited by
economists these days is panic among businesses and the population
anticipating a serious shortage of hard currency in the near future.
Neither the CB nor the government made any statements directly
concerning the situation on the currency market as of early Wednesday.
http://armenianow.com/economy/59420/armenia_currency_exchange_rate_dram_dollar_markets _depreciation