Yerevan /Mediamax/. Expectations of slow devaluation of AMD would require more expenses than preservation of fixed exchange rate in the course of a few months, Deputy Head of the Central Bank (CB) of Armenia Vache Gabrielyan stated in Yerevan today.

Mediamax reports that Vache Gabrielyan stated that this fact justifies the decision of CB on abrupt return to the policy of floating exchange rate.

“The continuous uncertainty in the market in conditions of slow devaluation of AMD would cause more damage to both consumers and managing subjects”, Vache Gabrielyan stated, answering the question of Mediamax. He noted that at present, expectations of further devaluation have sharply cut down.

CB Deputy Head expressed confidence that in 2009 the USD exchange rate will be preserved within the range of 360-380 AMD.

“The main task of CB is still control over inflation and according to our forecasts, taking into account all the possible scenarios, inflation will not exceed 8%”, Vache Gabrielyan stated.

He expressed opinion that the latest events in the market will lead to further increase of credit and deposit interest rates.

“CB steps are directed to preserve economic growth in Armenia, and despite the pessimistic forecasts of the WB and IMF, nevertheless we believe that in 2009 Armenia will register growth of economy at a few percents”, Vache Gabrielyan stated.

Answering the question on the risks of AMD devaluation for the market of corporate bonds in Armenia, Vache Gabrielyan expressed opinion that absence of expectations on further devaluation of national currency will attract more foreign investors to the Armenian market of corporate bonds.