Central Bank urges not to give in to short-term expectations, to trust and work with Armenian dram

YEREVAN, APRIL 15, ARMENPRESS. During crises Armenia’s Central Bank is recording drastic changes in the exchange rate in the Armenian financial market, and the recent cases are not an exception. The problem has been solved with the CBA’s intervention, but the Bank urges not to give in to forming short-term expectations, Director of the Financial Stability Department at the CBA Andranik Grigoryan said at a press conference today, asked what developments are noticed in the foreign exchange market.

He firstly reminded that the foreign exchange market or exchange rate in Armenia in fact are free-floating, the Central Bank intervenes to the foreign exchange market only in extreme cases to smooth out the potential or possible strict volatility of the market. “These latest cases are also not an exception when the CBA intervened in the market just to solve it in order to avoid strict fluctuation. However, during the current crisis as well we see that numerous speculative fluctuations are taking place in us where drastic changes in the exchange rate are occurring. Our call has always been and remains the same – do not give in to forming various expectations towards short-term fluctuations. We just need to believe in our dram, our policy”, he said, adding: “Dram is our currency, we need to believe in the Armenian dram, work and think with the dram”.

Reported by Anna Grigoryan

Edited and translated by Aneta Harutyunyan