ArmInfo. During the last week of December 2017, transactions on the forex interbank market of Armenia decreased for 33%, following 60,3% growth growth a week before. In the meantime, the purchase and sale of USD and EUR demonstrated negative dynamics amid the subsiding interest in RUR operations. As a result, during the reported week AMD its position against USD at 484 AMD/$1, depreciating against EUR from 504 to 505 AMD/1EUR .Earlier, in Jan- Sept 2016, AMD appreciated against USD from 482 to 474 AMD/USD1, depreciating against EUR from 529 to 532 AMD/1EUR, and against RUR from 6.9 to 7.5 AMD/1RUR. In October AMD devaluated against USD to 476 AMD/USD1, revaluated against EUR to 521 AMD/1EUR, while the AMD/RUR exchange rate remained unchanged - 7.5 AMD/1RUR. This tendency continued in November.
In the first 10 days of December the devaluation of AMD to USD continued, within a simultaneous giving up to EUR and RUR, but in the second decade AMD showed appreciation to EUR, keeping its depreciation to RUR and keeping the rate in respect to USD, but in the third decade AMD showed a tendency of slow devaluation to EUR, keeping the positions to USD and RUR. In the first decade of 2017 a sustainable devaluation of AMD was observed, being at that more sharp to EUR than to USD and RUR.
Since the beginning of last year the foreign exchange market showed signs of life rarely, making one at a time transaction between March and May: USD100 thousand in March, USD2.950 mln in April and USD800 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), June (USD50.2 mln), August ($19.8 mln), and September (USD28.8mln), October ( USD 50.8 mln at 475,47/1USD rate) and sold in January and February (USD53.1 mln and USD 41.5mln, at AMD484,69 /$1 and AMD 492,59/$1e respectively). The press office of the Central Bank of Armenia has told ArmInfo that during the period of Dec 26-30, 2017, the total amount of the transactions on the forex interbank market during the current week formed $14.800 mln (versus $22.073 mln a week before), and the average exchange rate was 484.64 AMD/$1 (versus former 482.01).
At the same time, on the intrabank market USD purchase changed its dynamics from 44% growth to 100% dropdown, within a similar change of trend in respect to EUR purchase from 55% growth to 42% dropdown. USD sales speeded up from 4% to 23%, and the EUR transactions increase tendency slowed down from 23% to 11%.
At this, the intrabank RUR transactions with different dynamics sharply increased: the purchase speeded up from % to 72%, and the sales changed 3% dropdown to 33% growth.
As a result, the purchase totaled $117 mln at the average exchange rate of 482.40 AMD/$1, 8.1 mln EUR at 502.76. AMD/1EUR, and 1.9 bln RUR at 7.84 AMD/1RUR. The sales amounted to $147.6 mln at the average rate of 484.09 AMD/$1, 17.5 mln EUR at 508.24 AMD/1EUR, and 455.4 mln RUR at 8.03 AMD/1RUR.
According to the source, during the previous week (December 19-24), Armenian banks provided AMD loans worth 41.9 bln AMD and USD loans worth $116.9 mln.
During the reported week the USD and AMD based loans trend changed from dropdown to increase. Particularly, the volume of of AMD increased for 7%, and the amount of USD loans rose for 67%, meanwhile a week ago the value of AMD and USD based loans showed dropdown for 14% and 24% respectively .
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. AMD started the year of 2017 with a devaluation to USD - from 484 to 485 AMD/ USD 1, to EUR - from 505 to 511 AMD/EUR 1, and to RUR - from 8 to 8,1 AMD /RUR 1.