Dram devaluates more sharply against EUR than against USD and RUR

ArmInfo. During the first  twenty days of January 2017 AMD devaluated against USD from 484 to  486.5 AMD/$1, against EUR from 505 to 520 AMD/1 EUR  and against RUR  from 8 to 8.2 AMD/1RUR. In the first ten days more sharp devaluation  of AMD against EUR rather than against USD and RUR was registered and  this dynamics continued in the next 10 days also. To note for  comparison that in the beginning of 2016 AMD exchange rate was as  follows: 482 AMD/$1, 529 AMD/1EUR and 6.9 AMD/1RUR. Since the  beginning of 2016 the foreign exchange market showed signs of life  rarely, making one at a time transaction between March and May:   USD100 thousand in March, USD 2.950 mln in April and USD 800 thousand  in May, after which it was passive. In Jan-Oct 2016, the Central Bank  bought USD on the foreign exchange market in April (USD2.4 mln at  478.5 AMD/$1 rate), June (USD 50.2 mln at 476.72 AMD/$1), August  ($19.8 mln at 474.25 AMD/$1), September (USD28.8mln at 474.11 AMD/$1)  and October (USD 50.8 mln at 475.47 AMD/$1), and sold in January and  February (USD53.1 mln and USD 41.5mln, respectively at 484.69 AMD/$1  and 492.59 AMD/$1).

The press office of the Central Bank of Armenia has told ArmInfo that  on January 9- 20 the amount of transactions on the interbank forex  market totaled $29.849 mln at the average exchange rate 486.33AMD/$1.  In the meantime, on the intrabank market the banks bought $159.232  mln at the average exchange rate of 484.92 AMD/$1, 14.558 mln EUR at  the average exchange rate of 512.69 AMD/1EUR, 1.9 bln RUR at the rate  of 8.06 AMD/1RUR and sold $188.137 mln at the average exchange rate  of 486.27 AMD/$1, 18.269 mln EUR at average rate of 517.42 AMD/1EUR  and 800.522 mln RUR at the average exchange rate of 8.19 AMD/1RUR. 

According to the source, during the previous week (December  26-January 14), Armenian banks provided AMD loans worth 111.5  bln  AMD and USD loans  worth $191.2  mln. 

To recall, in 2015, on the retail foreign exchange market of Armenia  AMD weakened against USD from 477 to 482 AMD/USD1 on average and  strengthened against EUR from 571.5 to 529 AMD/1EUR and against  Russian ruble from 8.2 to 6.9 AMD/1 RUR.  Between December 14 and 28,  the Central Bank made almost daily interventions.  AMD depreciated  amid decline of foreign trade turnover (by 20.6%), while import  dropped more significantly (by 26.5%) than export (by 3.9%) as well  as the decline in transfer inflow to Armenia more than by 30%, and  this happened in conditions of low buying capacity of the population  and low economic activity in the country. In 2016, AMD depreciated on  the retail foreign exchange market of  Armenia against USD and RUR to  484AMD/USD1 and 8 AMD/1RUR, and revaluated against EUR to 505  AMD/1EUR. This happened amid deflation of consumer prices by 1.1% in  2016, slackening of growth of economic activity to 0.6% in Jan-Nov  and foreign trade turnover registering 8% growth due to sharp change  of dynamics of export and import from negative to positive 21.2% and  2% respectively.