Orion Summit 2022: Armenia Central Bank Governor comments on dram devaluation and issues voiced by exporters




YEREVAN, JUNE 22, ARMENPRESS. Governor of the Central Bank of Armenia Martin Galstyan commented on the current devaluation of the Armenian dram and the issues raised by exporters during his speech at the Orion Summit 2022 in Yerevan.

He presented factors which contribute to devaluation of the dram, such as the flow of foreign visitors to Armenia, the growth in export of services. “Many of you visit restaurants in the evening where you can see how many foreigners there are. According to the statistical rules, it should be registered as an export. Thus, we can see an unprecedented growth in export from Armenia this year, which, of course, leads to the devaluation of the national currency”, he said.

He said that now some part of the society, particularly the exporters call on the Central Bank to artificially depreciate the Armenian dram, which, most probably, should help them to be more effective and competitive. However, the CBA Governor raises a question whether the effectiveness or non-effectiveness of exporters depends on the devaluation of the dram by 5-10%.

“In my view, this is not a solution. The solution is to be unique. If we want to be unique, there are many things we can do together. But I will not rely only on the artificial depreciation”, he said.

Recently the Armenian dram has been appreciating especially against the US dollar. As of June 21 exchange rates set by the CBA, the US dollar exchange rate has decreased by 4.02 drams, comprising 417.01 drams. The Euro exchange rate decreased by 3.40 drams, comprising 440.07 drams.