Armenian Prime Minister: USD Devaluation Has A Negative Effect On Ex

ARMENIAN PRIME MINISTER: USD DEVALUATION HAS A NEGATIVE EFFECT ON EXPORT OF ARMENIAN COMMODITIES

arminfo
2007-12-05 19:20:00

ArmInfo. The USD devaluation has a negative effect on export of
Armenian commodities and the standard of well-being of most Armenian
citizens, Armenian Prime Minister Serzh Sargsyan said at a briefing
in parliament, Wednesday.

According to him, Armenia’s economy is very small and vulnerable to
ongoing processes in the world. He compared it with a small ship which
is caught in storm. He added that many citizens of Armenia receive
"huge" funds from their relatives leaving in the United States and
Russia. These funds are sent to Armenia in USD, and in case of USD
devaluation, prices in the Armenian domestic market do not decrease,
therefore, the standard of these citizens’ well-being drops, Sargsyan
said. He stressed that this worries the Armenian government, which
tries to find out the reasons of the abrupt fluctuations in the
exchange rate and take measures. "We are concerned over the fact
that there may be abrupt exchange fluctuations within a day, and
we should find out whether they are caused by speculations in the
domestic market or by external influence", S.Sargsyan.

To note, last weekend USD/AMD exchange rate dropped by 10%.

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