Yerevan/Mediamax/. High inflation in Armenia is mainly conditioned by internal factors: monopolies and high share of shadow economy.

Mediamax reports that Ex-Chairman of the Central Bank (CB) of Armenia Bagrat Asatryan said this, speaking at a news conference in Yerevan today.

“Speaking of inflation, the authorities refer to external factors. Indeed, numerous countries in order to stimulate their own economy have adopted expansive policy; however, if we look at the inflation in Europe, we will see that it is within reasonable limits there. Here comes the conclusion: high inflation in Armenia is mainly conditioned by internal factors: monopolies and a big share of shadow economy”, Bagrat Asatryan stated.

He noted that in order to deter inflation, which has already exceeded 8% since the beginning of the year, the Central bank applies all existing tools, but their efficiency is low. “This is why, in order to deter inflation, CB again takes up the vicious practice of appreciating national currency through interventions in the currency market”, Bagrat Asatryan stated, noting that as compared to December, 2009, AMD has appreciated against USD, EUR and RR respectively by 5.5%, 12% and 7%.

Commenting on the recent reshuffle in the financial-economic bloc of the government, CB Ex-Chairman stated that they are not conditioned by system reforms and will not lead to any quality changes. Bagrat Asatryan expressed an opinion that Nerses Yeritsyan, failing to change anything in the system as the Minister of Economy, “only spoiled his reputation”.

CB Ex-Chairman spoke positively of the professional qualities of the newly-appointed Minister of Finance Vache Gabrielyan, expressing regret that in conditions of the vicious system of state management, he cannot use his knowledge properly.