Yerevan /Mediamax/. Board of the Central Bank of Armenia made a decision today to limit the interferences in the currency market of the country, “taking into account the aggravations in trade terms and the slow down of growth rates in inflow of capital to the republic”.

Mediamax reports that Chairman of Armenian CB Artur Javadyan said this at a news conference in Yerevan today.

According to him, the given limitation will allow the exchange rate forming in accordance with the macroeconomic conditions, the fact significantly improving the competitiveness of Armenia and contributing to creation of new workplaces.

According to Armenian CB’s assessments, the balanced currency exchange rate in 2009 is expected to make in the range of 360-380 AMD per 1 USD.

The CB Board established that, despite the fact that the fall of prices in the global market and the slow down of internal demand growth contribute to formation of low inflation, nevertheless, in conditions of AMD devaluation, the possible inflation may exceed the expected level, reaching 8-9% in 2009.

Artur Javadyan informed that, taking into account the given fact, CB Board made a decision to increase the refinancing rate for 1 percentage point, establishing it at the level of 7.75%.

CB Head stated that the decision to shift back to the policy of floating exchange rate is made basing on the fact that the financial system of Armenia is stable, overcapitalized and is ready to withstand challenges of the global crisis”.

“CB monetary-credit policy, aiming at financial stability, gave its positive results and will further on aim at securing stability of prices”, Artur Javadyan stated.

Further interference of CB in the currency market will be directed to leveling abrupt fluctuations, Armenian CB Hoard stated.

Artur Javadyan noted that already today the dollar exchange rate may reach 360-380 AMD, however, “the commercial banks of Armenia are overcapitalized and their liquidity makes $700mln, which will allow them easily realize currency exchange”.

Armenian  CB Head strongly criticized private exchange points, noting that “they do not fulfill their main function of currency exchange, but serve to only shadow economy, and they are the guilty of the stir in the currency market in the course of the recent days”.