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THE MONETARY POLICY OF ARMENIA WITH THE FLEXIBLE EXCHANGE RATE HELPED TO AVOID THE VIOLENT GROWTH OF INFLATION, IMF STATES
Mediamax
Nov 8, 2007
Yerevan, November 8 /Mediamax/. Armenia is the only country in the
South Caucasus and Central Asia, which managed to avoid the violent
growth of inflation.
Mediamax reports that this is stated in the IMF report "Economy
development prospects in the region of the Middle East and Central
Asia".
The document notes that the Caucasus and Central Asia belong to the
number of regions with high speed of economic growth. In the course
of the recent three years, it was estimated by two-digit numbers and
this year it is expected to reach the average level of 13%.
The speedily growing prices for oil have positive influence
on the oil and gas exporter-states - Azerbaijan, Kazakhstan and
Turkmenistan. "But the things are positive in other states as well,
which have considerably less natural resources. As a result of reforms
in Armenia and Georgia, the business atmosphere improved and the
arrival of direct foreign investments accelerated", the IMF Senior
Advisor of the Department of Middle East and Central Asia states
David Owen said.
At the same time, he stressed, there is tenseness showing up, related
to the resumption of the growth of inflation.
"Having decreased approximately from 15% in late 1990s to 5-7% by
2004, the average yearly speed of inflation in the region at present
is again estimated by a two-digit number. Under the influence of the
latest external shock, caused by the rapidly growing international
prices for foodstuffs, the average speed of inflation in September
exceeded 12% and, most likely, will still increase by the end of
the year. But even before this shock, the inflation was steadily
increasing. It was stirred up by the stable demand and the growing
liquidity, and the central banks in most of the states increased the
offers of national currency for the purchase of the inflowing foreign
currency to limit the consolidation of the rate of their currencies.
Exception is Armenia, the monetary policy of which with a flexible
exchange rate helped to preserve the inflation at about 5%", David
Owen noted.
Mediamax
Nov 8, 2007
Yerevan, November 8 /Mediamax/. Armenia is the only country in the
South Caucasus and Central Asia, which managed to avoid the violent
growth of inflation.
Mediamax reports that this is stated in the IMF report "Economy
development prospects in the region of the Middle East and Central
Asia".
The document notes that the Caucasus and Central Asia belong to the
number of regions with high speed of economic growth. In the course
of the recent three years, it was estimated by two-digit numbers and
this year it is expected to reach the average level of 13%.
The speedily growing prices for oil have positive influence
on the oil and gas exporter-states - Azerbaijan, Kazakhstan and
Turkmenistan. "But the things are positive in other states as well,
which have considerably less natural resources. As a result of reforms
in Armenia and Georgia, the business atmosphere improved and the
arrival of direct foreign investments accelerated", the IMF Senior
Advisor of the Department of Middle East and Central Asia states
David Owen said.
At the same time, he stressed, there is tenseness showing up, related
to the resumption of the growth of inflation.
"Having decreased approximately from 15% in late 1990s to 5-7% by
2004, the average yearly speed of inflation in the region at present
is again estimated by a two-digit number. Under the influence of the
latest external shock, caused by the rapidly growing international
prices for foodstuffs, the average speed of inflation in September
exceeded 12% and, most likely, will still increase by the end of
the year. But even before this shock, the inflation was steadily
increasing. It was stirred up by the stable demand and the growing
liquidity, and the central banks in most of the states increased the
offers of national currency for the purchase of the inflowing foreign
currency to limit the consolidation of the rate of their currencies.
Exception is Armenia, the monetary policy of which with a flexible
exchange rate helped to preserve the inflation at about 5%", David
Owen noted.