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JAVADYAN: ARMENIA'S FINANCIAL SECTOR ABLE TO RESIST SHOCKS
YEREVAN, December 29. /ARKA/. Armenia's financial sector has repeatedly
proved its ability to resist shocks, Arthur Javadyan, chairman of
the Central Bank of Armenia said Saturday at a traditional New Year
event held by the regulator.
He said deep structural economic and political changes in the world
and the region affect Armenia's economy.
"However, the Armenian economy has its own peculiarities, and in
this context impacts from Russia's economy or problems of this
country's banking sector can't fully reflect upon our economy - it
is impossible," Javadyan was quoted by the regulator's press office
as saying at the event.
The head of the central bank stressed that the recent fever at
Armenia's forex market was tamed ahead of New Year holidays.
"Our citizens and economic entities are still skeptical about things
in the first months of the next year, but the steps we are taking
pledge stability at the financial market," he said.
Fever at Armenia's forex market began on November 24, when the dollar
surged 16.6 percentage points to 435 drams hitting its record high
in eight years.
After the dollar hit a new record high on December 17, jumping 36.86
percentage points against the national currency to 527.20 drams,
it shed 30.2 percentage points on the next day to 497 drams and the
dram started recovering gradually thanks to the measures taken by the
central bank and the government, but volatility still remains at the
forex market.
The dollar traded at 461.58 drams on Saturday. In his speech,
Javadyan also thanked those citizens and companies "who trust the
dram - one of the most important symbols of our independence".
"I want to refer to independent international experts, who say that the
Armenian dram is one of the most accomplished currencies in developing
countries, especially among our region's countries," he said. "Those
who showed confidence in our national currency and refrained from
unjustified deals shielded themselves from foreign exchange losses."
Javadyan said that now many economic entities are trying to fuel fear
of the dram devaluation to mitigate the damage their own jobbing with
currencies inflicted on them.
He said that new approaches and flexibility are needed to meet global
challenges and strengthen the basis for a long-term sustainable
economic growth.
"It was impossible to resist the recent month's spontaneous
developments only by standard approaches," he said. "We understand
that we act in a new environment in which quick changes in public
behavior should be taken into account as well."
The head of the central bank also said that the regulator was
consistently lowering the refinancing rate throughout 2014 in an effort
to ensure a long-term economic growth and stable prices to the country.
"The development we faced by the end of this year have changed
our policy, and today we can say that we have managed to curb the
financial market's excessive resonance and to cushion inflation
pressures," Javadyan said.
On December 23, the Central Bank of Armenia raised the refinancing
rate by 1.75 percentage points to 8.5%. Before that, the regulator
changed the rate on August 12 by lowering it from 7% to 6.75%.
In the government budget for 2014, economic growth is projected at
5.2%, and in the 2015 budget GDP real growth is projected at 4.1%.
Inflation is projected at 4% (±1.5%) in both 2014 and 2015 budgets.
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http://arka.am/en/news/economy/javadyan_armenia_s_financial_sector_able_to_resist _shocks/#sthash.ZMiGvfl2.dpuf
From: Baghdasarian
YEREVAN, December 29. /ARKA/. Armenia's financial sector has repeatedly
proved its ability to resist shocks, Arthur Javadyan, chairman of
the Central Bank of Armenia said Saturday at a traditional New Year
event held by the regulator.
He said deep structural economic and political changes in the world
and the region affect Armenia's economy.
"However, the Armenian economy has its own peculiarities, and in
this context impacts from Russia's economy or problems of this
country's banking sector can't fully reflect upon our economy - it
is impossible," Javadyan was quoted by the regulator's press office
as saying at the event.
The head of the central bank stressed that the recent fever at
Armenia's forex market was tamed ahead of New Year holidays.
"Our citizens and economic entities are still skeptical about things
in the first months of the next year, but the steps we are taking
pledge stability at the financial market," he said.
Fever at Armenia's forex market began on November 24, when the dollar
surged 16.6 percentage points to 435 drams hitting its record high
in eight years.
After the dollar hit a new record high on December 17, jumping 36.86
percentage points against the national currency to 527.20 drams,
it shed 30.2 percentage points on the next day to 497 drams and the
dram started recovering gradually thanks to the measures taken by the
central bank and the government, but volatility still remains at the
forex market.
The dollar traded at 461.58 drams on Saturday. In his speech,
Javadyan also thanked those citizens and companies "who trust the
dram - one of the most important symbols of our independence".
"I want to refer to independent international experts, who say that the
Armenian dram is one of the most accomplished currencies in developing
countries, especially among our region's countries," he said. "Those
who showed confidence in our national currency and refrained from
unjustified deals shielded themselves from foreign exchange losses."
Javadyan said that now many economic entities are trying to fuel fear
of the dram devaluation to mitigate the damage their own jobbing with
currencies inflicted on them.
He said that new approaches and flexibility are needed to meet global
challenges and strengthen the basis for a long-term sustainable
economic growth.
"It was impossible to resist the recent month's spontaneous
developments only by standard approaches," he said. "We understand
that we act in a new environment in which quick changes in public
behavior should be taken into account as well."
The head of the central bank also said that the regulator was
consistently lowering the refinancing rate throughout 2014 in an effort
to ensure a long-term economic growth and stable prices to the country.
"The development we faced by the end of this year have changed
our policy, and today we can say that we have managed to curb the
financial market's excessive resonance and to cushion inflation
pressures," Javadyan said.
On December 23, the Central Bank of Armenia raised the refinancing
rate by 1.75 percentage points to 8.5%. Before that, the regulator
changed the rate on August 12 by lowering it from 7% to 6.75%.
In the government budget for 2014, economic growth is projected at
5.2%, and in the 2015 budget GDP real growth is projected at 4.1%.
Inflation is projected at 4% (±1.5%) in both 2014 and 2015 budgets.
---0----
http://arka.am/en/news/economy/javadyan_armenia_s_financial_sector_able_to_resist _shocks/#sthash.ZMiGvfl2.dpuf
From: Baghdasarian