Friday, December 19 2014 19:01
Armenian Central Bank's intervention remain without response for the second day running
ArmInfo. Armenian Central Bank's intervention in the inter-bank forex market has remained without response for the second day running. On Dec 19 Armenia's Central Bank tried to sell $4mln on the inter-bank forex market but none of the banks bought it. The forex transactions registered on the exchange on the same day totaled $450 thsd at the exchange rate of 442.44 AMD/1USD, with the average offer rate being 449.98 AMD/1 USD.
Dec 8-17 the CB sold $42mln: $6mln a day Dec 8-12 and $4mln a day Dec 15-17. The average rate during the period grew from 456.63 AMD/1 USD to 570.58 AMD/1 USD, while the cut-off price grew from 455 AMD/1 USD to 567.65 AMD/1 USD.
On Dec 18-19 on the retail forex market AMD appreciation made up 25%. On Dec 19, at 7 pm, the average AMD/USD exchange rate dropped to 455 AMD/$1, AMD/EUR exchange rate declined to 555 AMD/1EUR, AMD/RUR exchange rate dropped to 7.6 AMD/1RUR versus 570 AMD/$1, 712 AMD/1EUR and 8.6 AMD/1RUR, respectively, on Dec 17. On December 19, the optimal rates at the banks of Armenia were as follows: USD was purchased for 465 AMD (ceiling) and sold for 480 AMD (the lowest price), EUR was purchased for 577 AMD and sold for 595 AMD, and RUR was purchased for 7.63 AMD and sold for 7.94 AMD.
According to the CBA's statement dated 8 December 2014, on 8 December, the Central Bank of Armenia launched daily interventions to restore the balance in the exchange market and the soften currency fluctuations. The interventions will last till the end of 2014. The CBA will continue announcing the ceiling of daily sale amounts till the end of the year to normalize the situation in the exchange market of Armenia. According to the source, the CB will be publishing foreign exchange operations to ensure transparency in the financial market of Armenia. The daily intervention amounts will be reduced gradually until the national currency exchange rate is balanced. In particular, during the first week (8- 12 December) the daily interventions will be $6 mln. Afterwards, the daily interventions will gradually be reduced depending on demand and will be brought to zero by the end of the year.
From Oct till Dec 17 AMD dropped against USD by almost 45%. On Dec 18-19 it rose by 25%. As a result, on Dec 19 (at 5 pm) AMD/USD buying/selling rates made up 430/480 AMD/1 USD, AMD/EUR rates 510/600 AMD/1 EUR, AMD/RUR rates 6.95/8.25 AMD/1 RUR. At NASDAQ OMX Armenia, from June through December 19, foreign exchange operations amounted to $397.150 million drams with the exchange rate growing from 407.14 to 560 AMD/1 USD and then dropping to 442.44 AMD/1USD. The transactions in November alone totaled nearly $117 million drams. On 1-5 Dec, interbank market of foreign exchange operations registered a record-breaking indicator - $59.3 million.
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