Yerevan /Mediamax/. The adjustment of the exchange rate is necessary in order to strengthen Armenia’s competitiveness and mitigate the impact of the global economic crisis.

Mediamax reports that such a statement was made by the World Bank (WB) today.

The statement reads that the World Bank fully supports the return to a flexible exchange rate regime announced by the Central Bank of Armenia and the accompanying policy measures to support this transition.

“A flexible exchange rate regime is a key building block of the comprehensive economic policy program put in place by the Armenian authorities to cope with the impact of the global economic crisis. The adjustment of the exchange rate will help Armenian companies to compete more successfully in global and domestic markets and will pave the way for high and sustained growth”, WB statement reads. 

WB states that Armenia is facing the global economic crisis with strong defense lines, thanks to prudent macroeconomic management, a low level of public debt, and a sound banking system. The World Bank Group will continue supporting Armenia through the 2009-12 partnership strategy, with a scaled up lending program of US$ 525 million. The International Finance Corporation (IFC) stands ready to significantly increase its commitments to Armenian banks and businesses.

The Armenian authorities’ commitment to maintaining a sound macroeconomic framework and an open market regime have brought impressive economic results in the past and we look forward to supporting Armenia's reform efforts in the future.