In the foreign exchange interbank market of Armenia ruble transactions activated while there is demand slump for dollars and euros

ArmInfo. Armenian Currency  Interbank reduced the amount for February 13-17 in 3.3 times, after  growth by 4 times a week earlier. In parallel with this on the market  have intensified intra-denominated transactions, with a slump in  demand for dollars and euros. At this background, a small amount  flashed out on currency exchange site as well, previously unoccupied  since the beginning of the month.

As a result, AMD maintained its  position against the dollar at 487 AMD/USD1, slightly strengthened  against the euro from 521 to 520 AMD/USD1, but weakened against the  ruble, from 8.3 to 8.5 AMD/USD1. Prior to that, in January, there was  a devaluation of AMD to these currencies, and a sharper against euro  than to dollar and the ruble. As a comparison, at the beginning of  2016 AMD was formed against the dollar at 482 AMD/USD1, the EUR - 529  AMD/USD1 and RUR  6.9 AMD/USD1l.  Exchange currency area in  January-December 2016 showed signs of life from time to time, for a  single operation in March-May: $100thsd in March, $2.950mln in April  and $800thsd in May, followed by a lull.  The central bank in  January-December 2016 was buying dollars on the foreign exchange  market in April ($2.4mln at the rate of 478.5 AMD/USD1), June  ($50.2mln at the rate of 476.72 AMD/USD1), August ($19.8mln at the  rate of 474.25 AMD/ISD1), September ($28.8mln at the rate of 474.11  AMD/USD1) and October ($50.8mln at the rate of 475.47 AMD/USD1), and  sold in January ($53.1mln at the rate of 484.69 AMD/USD1), February  ($ 41.5mln at the rate of 492.59 AMD/USD1), November ($13.1mln at the  rate of 478.56 AMD/USD1) and December ($15mln at the rate of 483.06  AMD/USD1). 

As the press service of the Central Bank of Armenia told ArmInfo, in  the foreign exchange interbank market transactions was carried out  amounting $6.7mln in the volume in February 13-17 (weekly decline by  3.3 times) at the average exchange rate at 487.04 AMD/USD1 (against  the previous 486.59). Parallel to this, on the intramarket the  dynamics of dollar transactions strengthened the recession, and the  ruble transactions was replaced with a downturn in growth, while at  EUR operations multidirectional trend was registered: buying changed  from growth to decline at an accelerating sales growth. Thus, for the  reporting week, the volume of dollar buying/selling accelerated  decline since from 10-5,5% to 27-18,7%, the ruble was changed from  13-35,8% decline to 11,7-65,6% growth, and in EUR operations the  buying wner from 74.8% growth to 59.4% decline at an accelerating  growth of losses from 8.4% to 12.4%. As a result, $69.96mln has been  purchased at the average exchange rate 485.82 AMD/USD1, 7.3mln, Euro  at the average exchange rate of 514.69 AMD/EUR1 and RUR 797.9mln at  the average exchange rate 8.39 AMD/RUR1, and sold $83.8mln at the  average exchange rate 487.37 AMD/USD1, 10.1mln EUR at the average  exchange rate 518.69 AMD/EUR1 and RUR 487.2mln at the average  exchange rate 8.46 AMD/RUR1.

According to source, during the previous week (6 to 11 February)  Armenian banks issued AMD loans by 44.9bln AMD, and USD loans  amounted $41.1mln, compared to the previous period (from January 30  to February 4) AMD loans growth accelerated from 16.6% to 30.5%, and  the dynamics of dollar loans changed from 26% increase to 17%  decline.

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.