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REVALUATION OF THE ARMENIAN CURRENCY MUST BE REFLECTED ON PRICES - ECONOMIST
11:30 / 24.12.2014
Despite the devaluation of US Dollar the prices for the products
have not reduced. Nyut.am conducted interview with economist, head
of Alternative research center Tatul Manaseryan over the recent
developments in the market.
- Despite the decline of the USD, the prices have not reduced. Why
and what must be undertaken to end this situation?
- The management of currency supposes not only reduction of currency
rate but its reflection on the prices as well. Ensuring it is not just
the function of the Central Bank but more of the State Commission
for Protection of Economic Competition, Finance Ministry's Tax and
Customs Services.
If this control weakens and the prices were formed self-willingly
the efforts and means applied for stabilizing the currency were in
vain. I mean the reduction of currency rate must have its reflection
on the prices of products. If it does not occur, it means the state
has failed the regulatory and control functions.
- What the Central Bank and the Armenian government were to do not
to allow the speculations in the currency market?
- I do not think that anyone was expecting such blows. I can suppose
that from the first glance it was an issue the government could
overcome, but the experience showed that the forces interested in
the destabilization of the market were more and this resulted in
such blows. The registered in the currency market was not much the
devaluation of the dram but overvaluation of the USD. In general,
during the past three years USD is valuating against other currencies,
reinforces its position slowly, gradually. Now few factors objective
and subjective were added to it.
- Can we tie the recent developments with the valuation of the USD?
During these three years we could not imagine that such things
would happen.
- It shows that we are not conducting pro-active policy, we are more
conducting responding policy. For instance in 2008 first the government
was claiming that the crisis will not affect us, then they stated that
it will, then that it will bypass us, and in the end - it affected
us. We are responding to it, we are fighting against consequences. We
have enough financial resources, USD stores, specialists to make these
processes manageable which were used in the last days. But I think
we would have suffered greater losses if the situation was predicted.
The failure to predict was accompanied with the political conflict
and sanctions against Russia and it was possible to respond to it in
summer and be ready for it.
Nyut.am
From: Baghdasarian
11:30 / 24.12.2014
Despite the devaluation of US Dollar the prices for the products
have not reduced. Nyut.am conducted interview with economist, head
of Alternative research center Tatul Manaseryan over the recent
developments in the market.
- Despite the decline of the USD, the prices have not reduced. Why
and what must be undertaken to end this situation?
- The management of currency supposes not only reduction of currency
rate but its reflection on the prices as well. Ensuring it is not just
the function of the Central Bank but more of the State Commission
for Protection of Economic Competition, Finance Ministry's Tax and
Customs Services.
If this control weakens and the prices were formed self-willingly
the efforts and means applied for stabilizing the currency were in
vain. I mean the reduction of currency rate must have its reflection
on the prices of products. If it does not occur, it means the state
has failed the regulatory and control functions.
- What the Central Bank and the Armenian government were to do not
to allow the speculations in the currency market?
- I do not think that anyone was expecting such blows. I can suppose
that from the first glance it was an issue the government could
overcome, but the experience showed that the forces interested in
the destabilization of the market were more and this resulted in
such blows. The registered in the currency market was not much the
devaluation of the dram but overvaluation of the USD. In general,
during the past three years USD is valuating against other currencies,
reinforces its position slowly, gradually. Now few factors objective
and subjective were added to it.
- Can we tie the recent developments with the valuation of the USD?
During these three years we could not imagine that such things
would happen.
- It shows that we are not conducting pro-active policy, we are more
conducting responding policy. For instance in 2008 first the government
was claiming that the crisis will not affect us, then they stated that
it will, then that it will bypass us, and in the end - it affected
us. We are responding to it, we are fighting against consequences. We
have enough financial resources, USD stores, specialists to make these
processes manageable which were used in the last days. But I think
we would have suffered greater losses if the situation was predicted.
The failure to predict was accompanied with the political conflict
and sanctions against Russia and it was possible to respond to it in
summer and be ready for it.
Nyut.am
From: Baghdasarian