On March 27-31, on Armenia`s currency interbank AMD, USD transactions slow down, RUB one`s increase sharply

ArmInfo. On the currency interbank market of Armenia from March 27 to March 31, 2023, the slowdown in the growth of dollar transactions was accompanied by a sharp increase in ruble transactions, while there were no transactions in euro.  At the same time, similar dynamics were observed during daily transactions in dollars and 3x transactions in rubles. In particular, the weekly growth of dollar transactions slowed down sharply from 5.6-fold to 15.4%, while the  dynamics of ruble transactions improved from the 26.7% decline, increasing 2.3-fold. As a result, the predominance of the total volume of dollar transactions compared to the volume of ruble ones decreased 6-fold from 11.7- fold recorded a week earlier.

At the same time, in the reporting week (compared to March 27-31, 23, March 20-24, 23), the buying and selling of ruble and euro in the foreign currency intrabank market changed from recession to growth, while the sale of dollars remained in decline when the purchase increased.

As a result, from March 27 to March 31, 2023, the dram began to slowly devalue against the US dollar - from 388.5 to 389 AMD/ $1, recording a more noticeable depreciation against the euro - from 417 to 424 AMD/1EUR, while still remaining in relation to the ruble at the level of 5.1AMD/1RUB. A year earlier, on March 31, the exchange rate of the dram against the dollar was 483 AMD/$1, against the euro - 535.5AMD/1EUR, and against the ruble - 5.8 AMD/1RUB, which, compared with the current rates, indicates a y-o-y revaluation of the dram against the dollar, euro and ruble. It should be noted that it was during this period of 2022 that immigrants, mainly from Russia, arrived in Armenia, as a result of which high volatility began to be observed in the country's foreign currency market.

According to the Central Bank of the Republic of Armenia, on the currency interbank market from March 27 to March 31 this year, transactions in USD totaled $19.5 million at an average rate of AMD 388.76/$1 (against AMD 388.50/$1 in the previous week) and ruble transactions totaling RUB 250 million at an average rate of 5.05 AMD/1RUB (against 5.09 AMD/1RUB the previous week). The currency interbank, having worked daily this week, showed the maximum volume of dollar transactions on Thursday (March 30) - $6.3 million, and the same maximum volume of ruble transactions was recorded on Monday and Thursday (March 27 and 30) - 100 million rubles each.

On the intra-bank foreign exchange market from 27 to 31 March this year, compared to the previous week (March 20-24, 23), the dollar buying trend reversed from a 33.2% decline towards a 3.6% increase, with an imperceptible slowdown in sales decline from 12.3% to 11.4, while the buying and selling dynamics of the euro changed from a 16.7-29.2% fall to an increase of 14.3-28.4%, which was also observed in the buying and selling dynamics: from 3.2-39.2% decline towards 8-48.1% growth.

As a result, $130.2 million were purchased during the reporting week at an average rate of AMD 386.77/$1, EUR 37.5 million at an average rate of AMD 418.07/1EUR; and 13.4 billion rubles at an average rate of 5.02 AMD/1RUB; and $154.5 million were sold at an average rate of 389.74 AMD/$1; 76.7 million euros at an average rate of 423.62 AMD/1EUR; and 6.3 billion rubles, at an average rate of 5.08 AMD/1RUB.

According to the Central Bank of the Republic of Armenia, in 2022, the Central Bank intervened in the foreign exchange market in April and June-December, and these were only purchase transactions for a total of $573.8 million (including $100 million - in June, $81.3 million - in August , $80 million - in October, $114.1 million - in November and $57.9 million - in December), with a depreciation from April's 456.16 to December's 393.50 AMD/$1.  Over $7 billion, more than 1.4 billion euros and 295.04 billion rubles were purchased on the intrabank foreign exchange market in 2022, and $8.3 billion, more than 2.3 billion euros and 114.4 billion rubles were sold, which formed the purchase rate in December at the level of 392.89 AMD / $1;, 408.27 AMD / 1 EUR and 5.96 AMD / 1 RUB; and the selling rate is at the level of 396.27 AMD / $ 1, 420; 16 AMD / 1 EUR and 6.07 AMD / 1 RUB; against December 2021 482.42 AMD / $ 1; 544.20 AMD / 1 EUR, 6.53 AMD / 1 RUB- for buying; and 486.46 AMD / $ 1; 552 AMD / 1 EUR; 6.62 AMD / 1 RUB - for sale. In 2022, dollar transactions were made in the amount of $556.6 million, euro transactions - for EUR 28.8 millions; and ruble transactions - for RUB 8.7 billion, which was accompanied by the revaluation of the dram against the dollar to 394.12 AMD / $ 1 in December 2022 against 482.95 AMD /$1 in December 2021, EUR transactions were carried out in March and May-December2022, and RUB transactions - in March-December. RUB transactions on the currency interbank market of Armenia started on March 14, 2022. The foreign stock change has remained idle for the sixth year.