Active transactions of banks at NASDAQ OMX Armenia and interbank forex market hold Armenian Dram from devlauating

ArmInfo. Active transactions on the stock exchange and foreign exchange inter-bank market have held the national dram from devaluating. Considering the high volume of transactions, the Central Bank was behind it. 

Thus, on October 26-30, the forex transactions on NASDAQ OMX Armenia grew 43.4%, exceeding the volume of the interbank forex market, which saw an insignificant growth - 7.5%. As a result, after the September appreciation from 484 to 473 AMD/1USD, the Dram started revaluating in the first half of October to 474AMD/1USD, making up 471 AMD/1USD by October 23, and totaled 473AMD/1USD (as much as in early October) on October 30. 

According to the CBA press office, on October 26-30, the transactions on NASDAQ OMX Armenia totaled $5.550 mln, forming an average exchange rate of 472.96 AMD/$1. The banks were active on the stock exchange throughout the week, except Monday and Wednesday. The transactions on the forex interbank market within the week under review totaled $4.3 mln, forming the exchange rate at the level of 473.10 AMD/1USD. The Central Bank probably made an intervention, given one of the big transactions this week (Thursday -$5 million). The latest intervention of the Central Bank was on Oct 2 - $6 million, on Sept 19 - $22.2mln, and on August 28 - $95 mln.

The source says that on October 26-30, in the intrabank currency market (transactions with customers) the banks bought $82.1 mln (17% growth versus the previous week) at the average exchange rate of 471.06 AMD/$1, and sold $68.9 mln at the average exchange rate of 472.85 AMD/$1. In the meantime, the banks bought 5.3 mln EUR (down 32%) at the average exchange rate of 518.11 AMD/1EUR, and sold 20.8 mln EUR (up 45%) at the exchange rate of 521.45 AMD/1EUR. The banks also bought 755.5 mln RUR (17% weekly decline) at the average exchange rate of 7.37 AMD/1RUR and sold 325.5 mln RUR (16.7% weekly growth) at the exchange rate of 7.47 AMD/1RUR.

During the previous week (October 19-25) the Armenian banks provided AMD loans worth 47.7 bln AMD and USD loans worth $37.3 mln. As compared with the previous week (October 12-18), AMD loans increased 20.5% and the ones in terms of USD decreased by 46%.  

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/$1 by Dec 27. In 2014, in the retail forex market of Armenia, the AMD depreciated against USD by 40%, with the maximum indicator (570 AMD) fixed on Dec 17 and the minimum (406 AMD) registered in July. In the course of the 9 months of 2015, in the retail forex market AMD appreciated from 477 to 473 against USD; from 571.5 to 532 against EUR, at the same time depreciating from 8.2 to 7.2 against RUR. In October, the average USD/AMD exchange rate was floating. On October 30, it made up 473 AMD/1$. The national currency appreciated against EUR (520 AMD/1EUR) and appreciated against RUR (7.5 AMD/1RUR).