As activity in foreign exchange inter-bank market continues, Armenian dram keeps appreciating

ArmInfo. AMD has strengthened its position due to continuing activity in the foreign exchange inter-bank Armenia, parallel to rare but large-scale stock exchange deals. Notably, this week this was achieved without Armenia's Central Bank intervention taking into account comparatively small scale of deals. While at the end of August and at the middle of September Central Bank's major interventions couldn't be avoided. So, from 22 to 25 September inclusive, the volume of currency transactions at NASDAQ OMX Armenia rose by almost 17 times, still yielding to the volume of inter-bank foreign exchange, which decreased by more than 4 times. As a result, AMD strengthened towards dollar from 484 to 476 AMD/ $ 1 from 1 September to 25 September.

The press service of the Central Bank of Armenia told ArmInfo, that from September 22 to 25 inclusive the site on the foreign exchange NASDAQ OMX Armenia had transactions in the amount of $ 5.190 million, forming the average rate at the level of 475.98 AMD / $ 1. Moreover, banks were active on the stock exchange this week only on Tuesday (22 September) and Friday (25 September) but almost all the volume was reached at the end of the week. The inter-bank Foreign Exchange during the reporting week showed the amount of $ 6.050 million, forming the rate at the level of 475.79 AMD / $ 1 on average, and this time in contrast to last week the rate devaluated without intervention of the Central Bank, as evidenced by the comparatively small volumes of stock exchange and inter-bank. To recall, the previous major intervention by the Central Bank took place on August 28 - $ 95 million and September 19- $22.2 million.

According to the source, on the intra-exchange market (transactions with clients) from 22 to 25 September banks bought $ 66.9 mln (weekly decrease of 26%) at an average rate of 475.47 AMD / $ 1, and sold $ 89.2 million (a weekly increase of 2.3%) at an average rate of 477.27 AMD / $ 1. In the same period in the intra- bank foreign exchange market there was bought 9.9 mln Euro (weekly decrease of 19.4%) at an average rate of 530.34, AMD/ 1EUR, and sold 11.5 mln. Euro (weekly increase of 6.5%)  at an average rate 536, 12 AMD/ 1EUR. On the intra-exchange market in this period, the Bank has also bought 893.6 mln rubles (weekly decrease of 18%) at an average rate of 7.11 AMD/ 1RUR and sold 277.7 mln. rubles (weekly increase of 8.6%) at an average rate of 7.27 AMD/ 1RUR.

During the previous week (from 15 to 20 September), the Armenian banks disbursed AMD loans for 38.6 billion AMD and USD loans amounted to $ 40.9 million. In comparison with the previous week (from 7 September to 13 September), the amount provided by AMD increased by 7.2%, and dollar - by 9.1%. 

Recall that in the last months of 2014 the foreign exchange market of Armenia there was a sharp increase in foreign exchange in excess of 570 drams per dollar. In the retail foreign exchange market Armenian dram devalued against the dollar from October to December 17 2014 inclusive by almost 45%, while for the entire 2014 - 40% (taking into account the maximum threshold of 570 AMD - December 17, and the minimum ratio of 406 drams - in July). At the stock exchange for foreign exchange transactions in 2014 made a $ 744.5 million, with a cut in the monthly volume of a stir in November ($ 117 million).  During the year, the stock exchange rate jumped from 407.14 to 560 AMD / $ 1 (on December 17, and on that day the exchange rate increased by 22%). In first half of 2015 in the retail forex market, the dram has appreciated against the dollar - from 477 to 473 AMD / $ 1 on average, and against the euro - from 571.5 to 528 AMD / EUR 1, while devalued against the Russian ruble - from 8.2 to 8.6, etc. / 1ruble. However, since July, AMD outlined devaluation, the rate of which slowed in the last week of the month to form a rate on the July 31 against the dollar at the of level of 478.3 AMD / $ 1 on average against the euro and the Russian ruble - respectively 524 AMD / EUR 1, and 8 dram / 1rubl average. In August, despite the weighty intervention of the Central Bank on August 28 dram devaluation trend against the major currencies remained to form by August 31, the dollar exchange rate at 484 AMD / $ 1, and the euro - 544.3 AMD / EUR 1, against which there was the strengthening of the Russian rubles to 7.4 dram / 1rubl. In September, the dram continued uptrend, fracturing only on the revaluation of September 19, after a major intervention of the Central Bank, particularly against the US dollar exchange rate was formed at the level of 476AMD / $ 1, the euro - 531 AMD / EUR 1, against the Russian ruble - 7.3,AMD / 1rubl on average.