Armenia’s Inflation Not To Exceed 4% In 2007 – Central Bank

ARMENIA’S INFLATION NOT TO EXCEED 4% IN 2007 – CENTRAL BANK

ITAR-TASS News Agency, Russia
February 5, 2007 Monday 04:01 PM EST

The Central Bank of Armenia will guarantee no more than 4-percent
inflation in 2007, the bank’s chairman Tigran Sarkisyan said on
Monday, pointing to "a high economic growth in the country and the
strengthening of the national currency".

He reaffirmed that the average inflation rate in Armenia had amounted
to 2.5 percent over the past eight years. This is one of the lowest
indicators among former Soviet republics.

Last year’s inflation in Armenia was 5.2 percent, and inflation band
is 1.5 percent.

In 2006, the Armenian national currency dram strengthened by 9
percent. In 2005, the average dram-to-U.S. dollar rate was to 457. In
2006 the rate totaled 416.

In 2007, the Armenian Central Bank is going to implement "new currency
regimes" harmonized with inflation, Sarkisyan said. While drafting
state budget revenues and expenditures, authorities will take into
account the national currency exchange rate fixed a month before the
drafting start, he added.

It is expected that the Armenian stock exchange will became private
in order to develop the national stock market, Sarkisyan said.