Saturday, July 30 2016 12:13
Svetlana Hovsepyan

A day of idleness on inter-bank forex market prompts devaluation of dram

ArmInfo. A day of idleness on the forex inter-bank market prompted devaluation of dram fro 476AMD/1USD to 477AMD/1USD, but the following daily high- volume 
transactions ($1.7-$5.1 million) stopped that tendency trend.  On July 25-20 compared to the previous week, the amount of transactions on the interbank forex market grew 6%. Simultaneously, dollars and euros were purchased actively on the intra-bank foreign exchange market, amid falling interest in the transactions in Russian rubles. At the same time, NASDAQ OMX Armenia has seen no transactions this week either. The Central Bank still refrains from interventions. 

In general, in the first half of 2016, AMD appreciated from 482 to 477 AMD/$1, depreciating in mid Feb (from 482 to 496 AMD/$1 on Feb 12), in early April (from 479 to 484.5 AMD/$1), in mid May (from 479 to 480.5 AMD/$1 on May 12), in early and in late June (from 478 to 479 AMD/$1 on June 3, and from 476 to 477 AMD/$1 on June 30), maintaining the 47 AMD/$1 level in the first half of July and totaling 476AMD/1USDon July 24. However, within the last week of the month, thenational currency devaluated to 477AMD/1USD. Independent experts say the AMD/USD exchange rate may rise to 540- 550 AMD/$1 by late 2016, amid the financial and economic crisis in Russia and the sliding prices of oil and crude metals, which is one of the key export items of Armenia.

The CBA press-office has told ArmInfo that this week NASDAQ OMX Armenia has seen no transactions again. The interbank forex market demonstrated daily activity, except Monday, registering the biggest amounts of transactions on July28 and 26 - $5.mln and $4,4 mln. This time, the total amount during the week (July 25 - 29) was $7.2 (versus $6.8mln for the previous week) at the average exchange rate 
of 476.73 AMD/1USD (versus the previous 476.57 AMD/$USD). 

The source says that on July 25-29, there was a high activity of dollar and euro transactions on the intra-bank market, amid decline of ruble transactions. The purchase of USD grew by 5.7% over the week and EUR by 13.2% amid decline of sales of USD b8 8.5% and growth of sales of EUR by 1.4%. At this background purchase/sale of Rubles fell 20.8% and 0.7%. Thus, the banks bought $92.9 mln at the average exchange rate of 475.52 AMD/$USD and 11.9 mln EUR at the average 
exchange rate of 522.43 AMD/1EUR and 995.1 mln RUR at the average exchange rate of 7.21 AMD/1 RUR, while they sold $96.6 mln at the average exchange rate of 476.85 AMD/1USD and 14.5 mln EUR at the average exchange rate of 527.63 AMD/1EUR, and 431.9 mln RUR at the average exchange rate of 7.31 AMD/1RUR. 

During the previous week (July 18 - 23), the Armenian banks provided AMD loans worth 33.6 bln and USD loans worth $44.4 mln. As compared with the previous week (July 11-16), AMD loans declined by 7.7%, amid 19.7% growth of the ones in terms of USD. 


To recall, in 2015, on the retail foreign exchange market of Armenia AMD weakened against USD from 477 to 482 AMD/$1 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/$1, however since March it strengthened and stood at 482 AMD/1USD by March 25. Later, AMD started revaluating again since mid-April. By April 29, AMD appreciated against USD to 479 AMD/$1 and this trend continued in May. By May 31, AMD appreciated against USD to 478 AMD/$1, and against EUR to 532 AMD/1EUR, at the same time depreciating against RUR to 7.3 AMD/1RUR. The first half of June AMD demonstrated moderate depreciation, followed by appreciation:  thus by June 30 the AMD stood at 477 AMD/$1, 529 AMD/1EUR, and 7.4 AMD/1 RUR. In July AMD was still at 477 AMD/$1, slightly depreciating against EUR to 530 AMD/1EUR and against Russian Ruble to 7.2 AMD/1RUR.

POST A COMMENT
Input digits     


News
Putin: Russia remains Armenia`s leading trade and economic partnerPutin: Russia remains Armenia`s leading trade and economic partner
Hakob Arshakyan: Despite advanced growth of high technologies,  level  of their use remains at  low levelHakob Arshakyan: Despite advanced growth of high technologies,  level  of their use remains at  low level
Pashinyan announces launch of new financial support mechanism for  industrial cooperation in EAEUPashinyan announces launch of new financial support mechanism for  industrial cooperation in EAEU
EDB Head: This year we have actively developed our portfolio in  ArmeniaEDB Head: This year we have actively developed our portfolio in  Armenia
AFD, ADB to allocate 100mln Euro, 100mln US dollars respectively to  support Armenia`s budgetAFD, ADB to allocate 100mln Euro, 100mln US dollars respectively to  support Armenia`s budget
Share of national debt in Armenia`s GDP to lower next year Share of national debt in Armenia`s GDP to lower next year 
Fitch Ratings reaffirmed Ardshinbank at `B+`, upgrading outlook to StableFitch Ratings reaffirmed Ardshinbank at `B+`, upgrading outlook to Stable
EDB planning more projects in Armenia next year EDB planning more projects in Armenia next year 
EDB implementing $100mln projects in ArmeniaEDB implementing $100mln projects in Armenia
Ministry of Economy expects Armenia`s GDP to grow by 14%Ministry of Economy expects Armenia`s GDP to grow by 14%
Air cargo transportation between Turkey and Armenia will start by the  end of 2022, media reports sayAir cargo transportation between Turkey and Armenia will start by the  end of 2022, media reports say
Minister: AMD 273 billion to be allocated from Armenia`s state budget  to pay interest rates in 2023Minister: AMD 273 billion to be allocated from Armenia`s state budget  to pay interest rates in 2023
Armenian-Iranian trade needs boosting - official Armenian-Iranian trade needs boosting - official 
Ardshinbank has extended the campaign for issuing a digital card for 1 dramArdshinbank has extended the campaign for issuing a digital card for 1 dram
Growth of Armenia`s economic activity to 14.5% in 10 months was  accompanied by increase in exports and importsGrowth of Armenia`s economic activity to 14.5% in 10 months was  accompanied by increase in exports and imports
Unprecedented offer from FLYONE ARMENIA: Beirut, Dubai, Tel Aviv for  only 89 eurosUnprecedented offer from FLYONE ARMENIA: Beirut, Dubai, Tel Aviv for  only 89 euros
Over a half of Armenia`s population live in  communities actively  involved in  CoM East projectOver a half of Armenia`s population live in  communities actively  involved in  CoM East project
Armenia`s transport infrastructure yet unprepared for new geoeconomic  configuration - Vahe Davtyan Armenia`s transport infrastructure yet unprepared for new geoeconomic  configuration - Vahe Davtyan 
AMD 4․653․223 to AMD 4․653․223 to "Aren Mehrabyan" foundation: beneficiary of "The Power of One Dram" for December is the Health Fund for Children of Armenia
Forecast: Without social support, poverty rate in Armenia could rise  to 49%Forecast: Without social support, poverty rate in Armenia could rise  to 49%
PSRC starts process of revising electricity tariffsPSRC starts process of revising electricity tariffs
Poverty rate in Armenia in 2021 increased by 0.1% compared to 2019Poverty rate in Armenia in 2021 increased by 0.1% compared to 2019
Armenia`s government to support IT sector Armenia`s government to support IT sector 
Ardshinbank holds a campaign 10000 AMD for every 300th client making a money transferArdshinbank holds a campaign 10000 AMD for every 300th client making a money transfer
Armenia`s share in UNECE programmes 22%Armenia`s share in UNECE programmes 22%
EU to issue 33mln EUR grant to Armenia EU to issue 33mln EUR grant to Armenia 
Nikol Pashinyan: Introduction of  universal income declaration system  will have significant anti-corruption effectNikol Pashinyan: Introduction of  universal income declaration system  will have significant anti-corruption effect
On December 1, Ameriabank to start initial placement of next tranche  of USD bonds in amount of $10 millionOn December 1, Ameriabank to start initial placement of next tranche  of USD bonds in amount of $10 million
Models of cooperation between public and private sectors are being  developed in ArmeniaModels of cooperation between public and private sectors are being  developed in Armenia
Evocabank launches new contactless cashless payment tool- mPOS for  business entitiesEvocabank launches new contactless cashless payment tool- mPOS for  business entities
Joint Initative of HSBC Bank in Armenia and Jinishian Memorial Foundation (JMF) promotes innovative and sustainable agriculture among the small holder farmers.Joint Initative of HSBC Bank in Armenia and Jinishian Memorial Foundation (JMF) promotes innovative and sustainable agriculture among the small holder farmers.
Civil Contract nominates Armen Nurbekyan for post of CBA Deputy  Chairman Civil Contract nominates Armen Nurbekyan for post of CBA Deputy  Chairman 
Economy Ministry to provide Economy Ministry to provide "oxygen" for IT companies working with  international market 
Party: Draft state budget of Artsakh for 2023 does not reflect  internal and external realities Party: Draft state budget of Artsakh for 2023 does not reflect  internal and external realities
Mher Grigoryan noted key importance of programs implemented jointly  with EBRD Mher Grigoryan noted key importance of programs implemented jointly  with EBRD 
Vahan Kerobyan: Our goal is to bring the volume of investments to 25%  of GDPVahan Kerobyan: Our goal is to bring the volume of investments to 25%  of GDP
Ameria PhonePOS.  New application for receiving non-cash payments with a smartphoneAmeria PhonePOS.  New application for receiving non-cash payments with a smartphone
EDB developed concept for establishing platform on which  multicurrency digital transactions may be carried out - Tigran  SargsyanEDB developed concept for establishing platform on which  multicurrency digital transactions may be carried out - Tigran  Sargsyan
EDB announces 2nd contest of digital technologiesEDB announces 2nd contest of digital technologies
Economy Ministry to support IT companies affected by dram  appreciationEconomy Ministry to support IT companies affected by dram  appreciation
Expert: There are a lot of random people in the tourism sector of  Armenia todayExpert: There are a lot of random people in the tourism sector of  Armenia today
Incomplete fulfillment of capital expenditures indicates a lack of  professionalism - EconomistIncomplete fulfillment of capital expenditures indicates a lack of  professionalism - Economist
EDB forecasts 4.2% GDP growth in Armenia in 2023 and gradual  devaluation of AMDEDB forecasts 4.2% GDP growth in Armenia in 2023 and gradual  devaluation of AMD
Sporadic construction of solar power plants could undermine Armenia`s  food security - expertSporadic construction of solar power plants could undermine Armenia`s  food security - expert
ADB to help Armenia develop wind energyADB to help Armenia develop wind energy
US considers granting Armenia market economy statusUS considers granting Armenia market economy status
Another dollar tranche of bonds from IDBankAnother dollar tranche of bonds from IDBank
Tourists arriving in Armenia faced difficulties due to cashless  payment requirements - MPTourists arriving in Armenia faced difficulties due to cashless  payment requirements - MP
Armenia`s tax authorities on peculiarities of taxation when renting  apartmentArmenia`s tax authorities on peculiarities of taxation when renting  apartment
AraratBank acts as an underwriter of National Mortgage Company RCO bonds   AraratBank acts as an underwriter of National Mortgage Company RCO bonds  
Converse Bank customer wins Visa campaignConverse Bank customer wins Visa campaign
Armenia`s economy recovered quickly after `September shock` - Vahan  KerobyanArmenia`s economy recovered quickly after `September shock` - Vahan  Kerobyan
AraratBank launches Google Pay for its card usersAraratBank launches Google Pay for its card users
Goods imported to Armenia to be liable to excise taxGoods imported to Armenia to be liable to excise tax
Armenia`s national debt in terms of figures not essential - Armenia`s  premier Armenia`s national debt in terms of figures not essential - Armenia`s  premier 
French Development Agency to open permanent office in YerevanFrench Development Agency to open permanent office in Yerevan
Proposed reform to introduce system of mandatory universal income  declaration system for all resident citizens in Armenia cannot ensure  achievement of the declared goals: Tigran JrbashyanProposed reform to introduce system of mandatory universal income  declaration system for all resident citizens in Armenia cannot ensure  achievement of the declared goals: Tigran Jrbashyan
IDBank  “MalatiaIDBank  “Malatia" branch now more comfortable and modern
Largest mining company in Armenia presents its first ESG reportLargest mining company in Armenia presents its first ESG report
It is already possible to make payments with IDBank cards via Apple PayIt is already possible to make payments with IDBank cards via Apple Pay
Read more


Exchange rates
09.12.2022
RUB6.330.01
USD395.300.15
EUR417.562.18
GBP484.723.70
CAD290.190.77
JPY29.060.19
CNY56.810.04
CHF424.014.22