Intrabank currency exchange transactions activated this week

ArmInfo. In intrabank market  of Armenia USD and RUB transactions activated at the background of  multidirectional dynamics of EUR transactions. Wherein, on the forex  exchange market has not been active, after a small volume a week ago. 

As a result, Armenian dram appreciated against US dollar from 486.5  AMD/$1 to 486AMD/$1 and depreciated against EUR from 520 AMD/1EUR to  524AMD/1EUR, at the same time slightly depreciating against Russian  ruble from 8.1 to 8.2 AMD/1RUR. In early January, AMD sharply  depreciated against EUR rather than against USD and RUR. It should be  noted for comparison that at 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-Nov 2016, the Central  Bank bought USD on the foreign exchange market in April (USD2.4 mln  at 478.5 AMD/$1), 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), and in November ($13.1 mln at 478.56AMD/$1).

The press office of the Central Bank of Armenia has told ArmInfo that  on January 30-February 3 the amount of transactions on interbank  forex market totaled $5.7 mln (weekly decrease at 41.8%) at the  average exchange rate of 486.43AMD/$1(against former 486.83AMD/$1).   In the meantime, on the intrabank market the weekly dynamics of the  currency transactions changed from decline to growth, except the EUR  sale transactions. Thus, during the reproted week the volume of USD  purchase/sale registered growth by 4-6% against the 36-44% decline,  RUR grew by 17-51% against the 62-64% decline, while purchase of EUR   grew by 28.8% versus 45% decline, at the same time decline in EUR  sales slackened to 5.6% from 50% decline.  As a result, the banks  bought $106.7 mln at the average exchange rate of 485.68 AMD/$1, 10.3  mln EUR at the average exchange rate of 520.81 AMD/1EUR and 821.5.1  mln RUR at the rate of 8.06 AMD/1RUR, and sold $108.6 mln at the  average exchange rate of 486.63 AMD/$1, 8.3 mln EUR at average rate  of 524.45 AMD/1EUR and 458.4 mln RUR at the average exchange rate of  8.14 AMD/1RUR. 

According to the source, during the previous week (January 23-28),  Armenian banks provided AMD loans worth 29.5 bln AMD and USD loans  worth $39.3 mln (77.8% growth versus 8.7-fold decline a week before),  meanwhile dynamics of AMD loans is still downward- from 3-fold to  24,5%. 

To recall, in 2015, on the retail foreign exchange market of Armenia,  AMD depreciated against USD from 477 to 482 AMD/USD1 on average and  appreciated 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 slackening of economic activity growth from 3.9% to 3.1%,  decline of foreign trade turnover (by 20.6%), with import dropping  more significantly (by 26.5%) than export (by 3.9%) as well as amid  decline in money transfer inflow to Armenia by over 30%, and this  happened under conditions of low buying capacity of the population.   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 0.5%, and decline of the net inflow of transfers (by 24%  in Jan-Nov 2016 versus Jan-Nov 2015). In the meantime, the foreign  trade turnover grew by 7.4% and deflation on the consumer market made  up 1.4%. In early 2017 AMD depreciated against USD from 484 to 485  AMD/$1, against EUR from 505 to 511 AMD/1EUR, and against RUR from 8  to 8.1 AMD/1RUR.