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ARMENIA NEEDS PHASAL STEPS BEFORE ADOPTING EEU COMMON CURRENCY
17:46 * 13.03.15
http://www.tert.am/en/news/2015/03/13/ashot-tavadyan/1616332
Before adopting the common currency proposed by the Eurasian
Economic Union (EEU), Armenia needs to implement phasal steps to
avoid a conflict of interests and resulting negative developments,
says an economist.
Speaking to Tert.am, the Control Chamber's first president, Ashot
Tavadyan, stressed the need of a coordinated monetary-loan policies
and refinance interest rate.
He cited the EEU accession treaty, Article 63 of which says that
price surge in the member states should be less than 5% higher from
the inflation rate of those countries where surge appeared to be
the lowest.
"The treaty of course calls for a coordinated monetary-loan policies.
But in that case, the currency exchange rate too, should be maximum
proportionate," Tavadyan added.
He said it is also possible to create a special fund which would
compensate social expenses in case of an essential currency change
in any of the countries.
"The changes should be proportionate against the US Dollar, and
the Euro and correspond to the inflation rate in the countries in
question," he added.
As for the refunding interest, Tavadyan said he finds it too high
compared to the general inflation rate. He said he doesn't think that
such a rate potentially contributes to economic growth. "A coordinated
monetary-loan policies apply also to currency," he said, noting that
last year's double slump in the oil prices slowed down the currency
flow to Russia, raising US Dollar's price almost all around the globe.
Tavadyan said he expects the common currency plan to lead to a conflict
of interests among the EEU member countries, but added that Armenia can
avoid possible problems in case pf actively protecting its interest.
17:46 * 13.03.15
http://www.tert.am/en/news/2015/03/13/ashot-tavadyan/1616332
Before adopting the common currency proposed by the Eurasian
Economic Union (EEU), Armenia needs to implement phasal steps to
avoid a conflict of interests and resulting negative developments,
says an economist.
Speaking to Tert.am, the Control Chamber's first president, Ashot
Tavadyan, stressed the need of a coordinated monetary-loan policies
and refinance interest rate.
He cited the EEU accession treaty, Article 63 of which says that
price surge in the member states should be less than 5% higher from
the inflation rate of those countries where surge appeared to be
the lowest.
"The treaty of course calls for a coordinated monetary-loan policies.
But in that case, the currency exchange rate too, should be maximum
proportionate," Tavadyan added.
He said it is also possible to create a special fund which would
compensate social expenses in case of an essential currency change
in any of the countries.
"The changes should be proportionate against the US Dollar, and
the Euro and correspond to the inflation rate in the countries in
question," he added.
As for the refunding interest, Tavadyan said he finds it too high
compared to the general inflation rate. He said he doesn't think that
such a rate potentially contributes to economic growth. "A coordinated
monetary-loan policies apply also to currency," he said, noting that
last year's double slump in the oil prices slowed down the currency
flow to Russia, raising US Dollar's price almost all around the globe.
Tavadyan said he expects the common currency plan to lead to a conflict
of interests among the EEU member countries, but added that Armenia can
avoid possible problems in case pf actively protecting its interest.