AMD devaluates against USD and RUR while strengthening against EUR

ArmInfo. The Currency  Interbank of Armenia increased its volume for February 6-10 for 4  times, after previous week decline by 41,8%. At the same time, on the  intrabank market the purchase/sale of dollars experienced volume  decline and activated the EUR operations. While the the currency  exchange marketplace continues to be empty.  

Thus, in the current  week, AMD devaluated against USD from 486 to 487 AMD/USD1,  strengthened against EUR from 524 to 521 AMD/1EUR, against RUR from  8.2 to 8.3 AMD/1RUR. Previously, in January the AMD devaluation  against the given currencies was registered, and sharper against EUR  then against USD and RUR. To note, comparing with 2016 beginning, AMD  formed against USD on the level of 482 AMD/USD1, against EUR 529  AMD/EUR1 and 6.9 AMD/RUR1. Exchange currency area in January-December  2016 showed signs of life from time to time - for a single operation  in March-May: $100thsd- March, $2.950mln-April and $800thsd in May  followed by a lull. In Jan-Dec 2016, Central Bank bought USD on the  foreign exchange market in April (USD2.4 mln at the rate of 476.72  AMD/USD1), June (USD50.2 mln at the rate of 476.72 AMD/USD1) and  August ($19.8 mln at the rate of 474,25 AMD/USD1), in September  (USD28.8mln at the rate of 474,11 AMD/USD1) and October (USD50.8mln  at the rate of 475,47 AMD/USD1), and sold in January and February  (USD53.1 mln and USD41.5mln, respectively), November ($ 13.1mln at  the rate of 478.56 AMD/USD1) and December ($15mln at the rate of  483.06 AMD/USD1).

The press office of the Central Bank of Armenia (CBA) has told   ArmInfo that on February 6-10, amount of transactions on the forex  interbank market totaled  $22.3mln (weekly increase for 4 times) at  the average rate of 486.59 AMD/USD (against previous 486.47  AMD/USD1). At the same time, on the intrabank market USD purchase  declined, while the interest to EUR transactions grew. Thus, for the  reporting week, the volume of buying / selling dollars at 4-6% grew  left in 10-5,5% decline, the decline of the ruble - from 17- 51%  increase to 13-35,8% decline and on EUR operations improved dynamics  observed on sale - with 5.6% from decline to 8.4% growth, in parallel  with the accelerated pace of growth of EUR buying- from 28.8% to  74.8%. As a result, USD95.8mln at the average exchange rate of 485.72  AMD/USD1, EUR17.9mln was bought the average exchange rate of 517.13  AMD/EUR1 and RUR713.7mln the average exchange rate of 8.19AMD/RUR1,  and sold USD103mln at an average exchange rate of 486.85 AMD/USD1,  EUR8.9 mln at the average exchange rate of 522.47 AMD/EUR1 and  RUR294.1mln the average exchange rate of 8.29 AMD/RUR1.

According to the source, during the previous week (January  30-February 4), the Armenian banks provided AMD loans worth 34.4bln  AMD and USD loans worth $49.5 mln.  In comparison with the previous  period (January 23-28) dynamics has improved for AMD loans from 24.5%  decline to 16.6% growth, and the rate on USD loans growth slackened  from 77.8% to 26%.

USD sales rose by 39%, and EUR sales grew by 28%. RUR purchase fell  by 23%, and RUR sales - by 54%. As a result, the purchase totaled  $90.6 mln at the average exchange rate of 483.77 AMD/$1, 9.7 mln EUR  at 511.09 AMD/1EUR, and 1.007 bln RUR at 7.82 AMD/1RUR.  The sales  amounted to $115.3 mln at the average rate of 485.64 AMD/$1, 13.4 mln  EUR at 514.14 AMD/1EUR, and 353.9 mln RUR at 7.96 AMD/1RUR.  The  total amount of the transactions on the forex interbank market during  the current week amounted $22.074 mln (versus $13.789 mln a week  before), and the average exchange rate was 482,01 AMD/$1 (versus  485,28 a week before). At the same time, on the intrabank market USD  purchase rose by from 36% to 44%, while EUR purchase grew by from 26%  to 55%.  USD sales dropped down from 39% to 4%, and EUR sales trend  grew by 23 % (versus 28% a week before).  Within this picture, RUR  purchase operations showed different dynamics: buy changed its flow  from 23% decrease to 11% growth, and sales drop down slowed from 54%  to 3%.  As a result, the purchase totaled $131mln at the average  exchange rate of 481,28 AMD/$1, 14,9 mln EUR at 499,32 AMD/1EUR, and  1.1 bln RUR at 7.78 AMD/1RUR. The sales amounted to $119.8 mln at the  average rate of 482.42 AMD/$1, 15.7mln EUR at 504.75 AMD/1EUR, and  341.7 mln RUR at 7.91 AMD/1RUR.  

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.  Since early 2016, AMD  started depreciating again on the retail foreign exchange market of  Armenia to 496AMD/USD1, however since March it strengthened and stood  at 482 AMD/1USD by March 25. In overall in H1 2016 AMD appreciated to  477 AMD/USD1 from 482 AMD/USD1, devaluating in mid Feb (to 496  AMD/USD1 from 482AMD/USD1 on Feb 12), in the first decade of April  (to 484.5AMD/USD1 from 479 AMD/USD1), in mid May (to 480.5 AMD/USD1  from 479 AMD/USD1-on May 12), in the early and late June (to 479  AMD/USD1 from 478 on June 3 and to 477 AMD/USD1 from 476 AMD/USD1 on  June 30).  In July AMD appreciated to 476 AMD/USD1 only in the  beginning of the third decade, after which it stood at the initial  level of 477 AMD/USD1. In August, AMD demonstrated revaluation - 475  AMD/USD1 by August 31 and stood at this level in the first ten days  of September, after which it further revaluated.  Thus, by September  30, AMD appreciated against USD and EUR to 474 AMD/USD1 and 532  AMD/1EUR, respectively. Along with it, AMD depreciated against RUR to  7.5 AMD/1RUR. In October AMD devaluated against USD to 476 AMD/1USD,  revaluated against EUR to 521 AMD/1EUR, while the AMD/RUR exchange  rate remained unchanged - 7.5 AMD/1RUR.  This trend continued in  November.  By November 30, AMD depreciated against USD to 480.5  AMD/$1, at the same time appreciating against EUR to 511 AMD/1EUR and  appreciating against RUR at 7.4 AMD/1RUR. In early December AMD kept  depreciating against USD, at the same time weakening against EUR and  RUR, but in mid-December AMD appreciated against EUR and continued  weakening against RUR, retaining its position against USD.