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WEAKER DREAM NOT IMMEDIATELY TRIGGERS INCREASE IN EXPORTS, SAYS ASSOCIATION HEAD
ECONOMY | 23.12.14 | 15:13
http://armenianow.com/economy/59574/armenia_economy_export_eeu_dram_currency
Alina Nikoghosyan
ArmeniaNow intern
Armenian exports are falling, says Raffi Mkhchyan, the head of
Armenia's Exporters Union, citing statistics showing that in November,
compared to the same period of 2013, the fall made 18 percent.
"The most important and tangible question is that people have a false
opinion that when the dram depreciates large-scale exports will start,
it is not exactly so and has never been, time and other factors are
necessary for that," Mkhchyan told reporters on Tuesday, addressing
the situation when the national currency is getting weaker against
the dollar, which according to economic theories should be auspicious
for exporting businesses.
According to Mkhchyan, Armenia is not famous for large scales of
export. "Nor can we say that Armenia can surprise the world with its
volumes of production," he added.
"The situation of the last 10 days were a considerable damage to the
economy, we lost many agreements, mostly with Russia.
The main reason was the instability of the ruble, which devaluated
by 50-60 percent, nevertheless, we can review and change agreements
quickly, and we can work with Russia with dollars," he said. (While
the Armenian dram was falling, the Russian ruble was falling to a
greater extent last week, making it even less profitable for Armenian
exporters to supply goods to Russia).
According to Mkhchyan, after Armenia becomes a member of the Eurasian
Economic Union (EEU) from January 1, Russia will not create favorable
financial conditions for Armenia.
"We will not immediately feel the consequences of what happened in
Armenia recently, that will come in 2015," he said.
On December 17 the Armenian dram fell to as low as 600 AMD/1US$ for
a while before rebounding and prices for some goods were raised by
up to 30 percent. Today at most currency exchange offices one dollar
can be bought for 455-460 AMD.
On Monday, during a reception for the business community, Armenian
President Serzh Sargsyan said that some of the current year's
difficulties and uncertainties that have objective reasons are likely
to continue in Armenia in 2015. H also spoke about challenges and
opportunities of Eurasian integration.
"I have no doubts that our entrepreneurs are competitive and have what
to say and will have their role in the new economic union as well,"
Sargsyan said.
ECONOMY | 23.12.14 | 15:13
http://armenianow.com/economy/59574/armenia_economy_export_eeu_dram_currency
Alina Nikoghosyan
ArmeniaNow intern
Armenian exports are falling, says Raffi Mkhchyan, the head of
Armenia's Exporters Union, citing statistics showing that in November,
compared to the same period of 2013, the fall made 18 percent.
"The most important and tangible question is that people have a false
opinion that when the dram depreciates large-scale exports will start,
it is not exactly so and has never been, time and other factors are
necessary for that," Mkhchyan told reporters on Tuesday, addressing
the situation when the national currency is getting weaker against
the dollar, which according to economic theories should be auspicious
for exporting businesses.
According to Mkhchyan, Armenia is not famous for large scales of
export. "Nor can we say that Armenia can surprise the world with its
volumes of production," he added.
"The situation of the last 10 days were a considerable damage to the
economy, we lost many agreements, mostly with Russia.
The main reason was the instability of the ruble, which devaluated
by 50-60 percent, nevertheless, we can review and change agreements
quickly, and we can work with Russia with dollars," he said. (While
the Armenian dram was falling, the Russian ruble was falling to a
greater extent last week, making it even less profitable for Armenian
exporters to supply goods to Russia).
According to Mkhchyan, after Armenia becomes a member of the Eurasian
Economic Union (EEU) from January 1, Russia will not create favorable
financial conditions for Armenia.
"We will not immediately feel the consequences of what happened in
Armenia recently, that will come in 2015," he said.
On December 17 the Armenian dram fell to as low as 600 AMD/1US$ for
a while before rebounding and prices for some goods were raised by
up to 30 percent. Today at most currency exchange offices one dollar
can be bought for 455-460 AMD.
On Monday, during a reception for the business community, Armenian
President Serzh Sargsyan said that some of the current year's
difficulties and uncertainties that have objective reasons are likely
to continue in Armenia in 2015. H also spoke about challenges and
opportunities of Eurasian integration.
"I have no doubts that our entrepreneurs are competitive and have what
to say and will have their role in the new economic union as well,"
Sargsyan said.