Armenian dram maintains stability with balanced monetary lending policy, economist says

YREVAN, AUG 11, ARMENPRESS. Amid depreciation of the national currencies of neighboring states in the region, the Armenian national dram maintains its stability, economist Tatul Manaseryan told Armenpress. He said he was noticing trends of domestic currency instability in the region against the backdrop of unpredictable foreign policy led by US President Donald Trump.

The economist pointed out that there is a common depreciation of the currencies of neighboring countries – Iran, Turkey, Georgia and Azerbaijan, but the Armenian national dram maintains its stability.

“In this regard, the Armenian national dram maintains not only relative, but also absolute stability over the past few years, which, of course, is the result of a balanced monetary lending policy, which in turn creates a context stable for the business environment. In other words, the national currency also makes economic developments predictable for entrepreneurs and investors, of course, makes the Armenian economy much more preferable, ”noted the economist.

He recalled how many banks have been closed in neighboring states, which did not happen in Armenia even during the depreciation of the national dram in 2009-2014.

Manaseryan says the new US sanctions against Russia are not desirable for Armenia. He states that the economies of Armenia and Russia are interdependent and that exports and imports are quite a large volume which is increasing every year, especially in the context of joining the Eurasian Economic Union (UEE) .

“The depreciation of the Russian ruble in recent times, and I would say in recent years, affects Armenia quite negatively. And it is first of all the decline in the solvency of the Russian population which can undermine the sale of goods exported from Armenia ”, underlined the economist.

According to him, on the other hand, when the national currency of the partner country of Armenia depreciates, it allows the country to acquire raw materials or ready-made products at relatively affordable prices.

Edited and translated by Aneta Harutyunyan

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