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NON-GOVERNING PARTY MP DESCRIBES CURRENCY MARKET UPHEAVALS AS UNPRECEDENTED, BUT PREDICTABLE
ECONOMY | 19.12.14 | 15:14
http://armenianow.com/economy/59516/armenia_dram_dollar_exchange_rate_prices_mikayel_m elkumyan
GOHAR ABRAHAMYAN
ArmeniaNow reporter
Armenia needs not cosmetic or sectional, but drastic changes,
Prosperous Armenia Party (PAP) lawmaker Mikayel Melkumyan said on
Friday, commenting on recent days' turmoil on the country's currency
market.
Enlarge Photo
According to Melkumyan, while the developments were unprecedented, they
were still predictable. He reminded the media that the PAP warned about
high volatility risks still after the parliamentary elections of 2012.
"We told you that the state has shifted from the correct path,
and the economic policy we run will take us to a dead-end. What
happened during the recent days cost too much for our society. It
struck hard everyone - all layers of the society - without exception;
the villagers, who started cutting the animals and selling because
forage became very expensive; the scientists, teachers and doctors -
the purchasing power of their salaries was cut in half. The small and
medium business hesitated, did not know how to price their goods and
services," the MP said.
According to Melkumyan, the people are in shock, they do not understand
what is happening around them, and they do not know how much longer
the 'indefiniteness and despair' will last, and, as the MP said,
'this will leave its influence still for a long time."
Melkumyan thinks that there are two main reasons behind the dram
devaluation: one is the external influence, namely, all that causes
changes in the Russian economy, and the other one - the internal
state of the economy.
"If your economy's immunity, resistance is equal to zero, it will
be influenced by the wind every day. It was the way during the
Russian-Georgian war when within 5-6 days our storages of oil and
petrol depleted. It was clear for us that this might happen, because
during the last 2-3 years no investments were made," the MP said.
Although the results of the recent days' drastic inflation have not
been summarized yet, however the National Statistical Service (NSS)
Price and International Comparisons Division head Gurgen Martirosyan
at Friday's press conference presented the price changes picture for
2014 in the consumption market saying that by November there was a
more favorable situation in the country in terms of inflation.
According to Martirosyan, in November, compared to October, a
1.3-percent inflation was recorded, and whereas in September, October
and November of 2013 the overall inflation made one percent, during
these three months of 2014 the overall inflation made 2.7 percent.
As the dram hit its historic low of nearly 600 per U.S. dollar earlier
this week causing negative expectations among economic agents some
businesses suspended trade or raised retail prices in anticipation
of hard currency shortages. On Thursday, the dram rebounded just as
dramatically as it lost its ground earlier, but prices appear to be
lowering at a much slower pace.
Scores of citizens gathered near the government building today to
voice their discontent over what they see as excessively high prices
in stores. Prime Minister Hovik Abrahamyan visited several supermarkets
on Thursday, warning retailers against unreasonable price hikes.
ECONOMY | 19.12.14 | 15:14
http://armenianow.com/economy/59516/armenia_dram_dollar_exchange_rate_prices_mikayel_m elkumyan
GOHAR ABRAHAMYAN
ArmeniaNow reporter
Armenia needs not cosmetic or sectional, but drastic changes,
Prosperous Armenia Party (PAP) lawmaker Mikayel Melkumyan said on
Friday, commenting on recent days' turmoil on the country's currency
market.
Enlarge Photo
According to Melkumyan, while the developments were unprecedented, they
were still predictable. He reminded the media that the PAP warned about
high volatility risks still after the parliamentary elections of 2012.
"We told you that the state has shifted from the correct path,
and the economic policy we run will take us to a dead-end. What
happened during the recent days cost too much for our society. It
struck hard everyone - all layers of the society - without exception;
the villagers, who started cutting the animals and selling because
forage became very expensive; the scientists, teachers and doctors -
the purchasing power of their salaries was cut in half. The small and
medium business hesitated, did not know how to price their goods and
services," the MP said.
According to Melkumyan, the people are in shock, they do not understand
what is happening around them, and they do not know how much longer
the 'indefiniteness and despair' will last, and, as the MP said,
'this will leave its influence still for a long time."
Melkumyan thinks that there are two main reasons behind the dram
devaluation: one is the external influence, namely, all that causes
changes in the Russian economy, and the other one - the internal
state of the economy.
"If your economy's immunity, resistance is equal to zero, it will
be influenced by the wind every day. It was the way during the
Russian-Georgian war when within 5-6 days our storages of oil and
petrol depleted. It was clear for us that this might happen, because
during the last 2-3 years no investments were made," the MP said.
Although the results of the recent days' drastic inflation have not
been summarized yet, however the National Statistical Service (NSS)
Price and International Comparisons Division head Gurgen Martirosyan
at Friday's press conference presented the price changes picture for
2014 in the consumption market saying that by November there was a
more favorable situation in the country in terms of inflation.
According to Martirosyan, in November, compared to October, a
1.3-percent inflation was recorded, and whereas in September, October
and November of 2013 the overall inflation made one percent, during
these three months of 2014 the overall inflation made 2.7 percent.
As the dram hit its historic low of nearly 600 per U.S. dollar earlier
this week causing negative expectations among economic agents some
businesses suspended trade or raised retail prices in anticipation
of hard currency shortages. On Thursday, the dram rebounded just as
dramatically as it lost its ground earlier, but prices appear to be
lowering at a much slower pace.
Scores of citizens gathered near the government building today to
voice their discontent over what they see as excessively high prices
in stores. Prime Minister Hovik Abrahamyan visited several supermarkets
on Thursday, warning retailers against unreasonable price hikes.