Gagik Makaryan named the main reasons for the devaluation of the dram

ArmInfo. The devaluation of  the national currency in Armenia is associated with a number of  reasons, first of all, with a decrease in export volumes, transfer  inflows, limitation of international donor programs, the inability to  leave for labor migrants and a worsening economic situation in the  country. A similar opinion was expressed by the chairman of the  Republican Union of Employers of Armenia, economist Gagik Makaryan  during a press conference on December 16. In particular, he stressed  that today the dollar in relation to the dram is about 520-530 AMD /  $, the euro has reached 630-640 AMD /EUR. He noted that the Central  Bank is now pursuing a restrictive policy, trying to keep the  exchange rate at a level acceptable to exporters and not creating  serious problems for importers. However, according to Makaryan, the  Armenian economy remains more dependent on the dollar. Artificially,  in view of the current situation, the profits of exporters are  growing, but in this regard, he stressed that the share of exports is  40% of imports. Consequently, currency devaluation can lead to higher  prices for certain imported goods.

Makaryan explained the decrease in transfers with the outbreak of the  coronavirus pandemic and martial law, as a result of which citizens  directed their funds to help citizens affected by the coronavirus and  war.  In addition, due to the pandemic, labor migrants of Armenia did  not have the opportunity to go abroad to work.

The expert also pointed out the lack of financial resources in the  international market, which is why a decrease in the volume of  programs implemented by donors, including in Armenia, was recorded.   It should be noted that according to the forecast of the Central Bank  of Armenia, in Armenia, in conditions of high economic uncertainty in  the short term, there are risks of inflation deviation towards  growth.  However, in the medium term, inflation in Armenia will not  exceed 4%. At the same time, the regulator notes that in the consumer  market of Armenia for certain goods there is an increase in prices  associated with a number of factors, in particular, the rise in  prices for food products (due to the rise in their prices on  international markets) and the devaluation of the dram.

At the same time, the head of the Central Bank Martin Galstyan noted  that the balance sheet portfolio of economic entities adjusted more  towards foreign currency, which resulted in the formation of a demand  for the US dollar, and this naturally influenced the exchange rate.  , he stressed.