Active transactions on stock exchange and foreign exchange inter-bank market so far hold national dram from devaluating

ArmInfo. Active transactions on the stock exchange and forex inter- bank market prevent the national dram (Dram) from depreciation. Thus, on October 5-9, the forex transactions on NASDAQ OMX Armenia doubled, yielding to the volume of the interbank forex market, which saw a 30,5% decrease.  As a result, Dram after September appreciation from 484 up to 473 AMD/$1, demonstrated the same level on October 9.

The press office of the CBA has told ArmInfo that on October 5-9, the transactions on NASDAQ OMX Armenia totaled $5.950 mln, forming an average exchange rate of 472.95 AMD/$1.  The banks were active on the stock exchange throughout the week, except Thursday. The transactions on the forex interbank market within the week under review totaled $9.9 mln., forming the exchange rate at the level of 472.69AMD/1USD in average. Transactions with the Russian Ruble were register at the forex interbank this week - 50million rubles at the exchange rate of 7.55AMD/1RUR.  This time AMD again avoided devaluation, due to the intervention of the Central Bank: supposedly - $6 million on Oct 2, $22.2mln on Sept 19 and $95 mln on August 28. .

The source says that in the intrabank currency market (transactions with customers) the banks bought $57.3 mln (down 50% versus the previous week) on October 5-9 at the average exchange rate of 471.80 AMD/$1, and sold $81.02 mln (down 35% versus the previous week) at the average exchange rate of 473.73 AMD/$1. In the meantime, the banks bought 5.8 mln EUR (down 34%) at the average exchange rate of 528.34 AMD/1EUR, and sold 11.4 mln EUR (up 15%) at the exchange rate of 534.01 AMD/1EUR. The banks also bought 1.6 bln RUR (30% weekly decline) at the average exchange rate of 7.38 AMD/1RUR and sold 328.5 mln RUR (12% weekly delcine) at the exchange rate of 7.50 AMD/1RUR.

During the previous week of September 28 - October 4, the Armenian banks provided AMD loans worth 65.4 bln AMD and USD loans worth $72.6 mln. As compared with the previous week (21-27 September), and AMD loans increased almost twofold and the ones in terms of USD increase more than twofold.  To recall, during the last months of 2014 the forex market of Armenia registered a sharp rise of the AMD/USD exchange rate - over 570 AMD/1USD. From October through December 17, 2014, AMD depreciated by almost 45% in the retail forex market of Armenia, then it appreciated by 25% on Dec 18-20, staring depreciating against on Dec 22.  On Dec 27, the average AMD/USD exchange rate was 470 AMD/$1, the AMD/EUR exchange rate was 574 AMD/1EUR, the AMD/RUR exchange rate was 8.7 AMD/1RUR. Over 2014, NASDAQ OMX Armenia registered transactions worth a total of $744.5 mln, with the biggest amount falling on November ($117 mln). Over the year the exchange rate on NASDAQ OMX Armenia rose from 407.14 to 560 AMD/$1 (on Dec 17 the exchange rate rose by 22%), dropping to 470 AMD/$1 by Dec 27. In 2014, in the retail forex market of Armenia, the AMD depreciated against USD by 40%, with the maximum indicator (570 AMD) fixed on Dec 17 and the minimum (406 AMD) registered in July. In the course of the 9 months of 2015, in the retail forex market AMD appreciated from 477 to 473 against USD; from 571.5 to 532 against EUR, at the same time depreciating from 8.2 to 7.2 against RUR. By October 9, dram/dollar rate was left unchanged - 473 AMD/1$. However, the national currency depreciated against EUR and RUR:  up to 536AMD/1EUR and 7.9AMD/1ruble, respectively.