Saturday, September 21 2024 13:40

ArmInfo. From September 16 to 23, in the Armenian interbank foreign exchange market  there was a  noticeable decrease in dollar transactions, along with rise in ruble  transactions.

Euro transactions saw a resumption during this time  period. Moreover, there were two dollar transactions, two euro  transactions  in the interbank foreign exchange market during the  reporting week, and three transactions in rubles. The platform was  completely empty on Thursday and Friday. By the end of the week, the  trend in dollar transactions reversed from a 2.4-fold increase to an  83.5% decline, while the trend in ruble transactions shifted from a  54.2% decline to a 2.5-fold increase. As a result of the increased  activity in ruble transactions, their total weekly volume  significantly surpassed the weekly volume of both dollar transactions  (3.6 times) and euro transactions (5 times).  During the reporting  week (16-20.09.24 compared to 09-13.09.24), dollar purchases  increased while the decline in sales slowed down in the intra-bank  foreign exchange market, the euro purchase-sale trend turned towards  growth, and the decline in ruble purchase-sale slowed down  significantly.

As a result, from September 16 to 20, the AMD continued to strengthen  against both the US dollar - from AMD 386.8 to 386.5 /$1, and the  ruble - from AMD 4.25 to 4.17 /1 ruble, while setting itself up for  devaluation against the euro - from AMD 428.5 to 432 /1 euro. A year  earlier, on September 20, the dram exchange rate to the dollar was  AMD 387.5 /$1, to the euro - AMD414 /1 euro, and to the ruble - AMD  4.0 /1 ruble, which, compared to the current rates, indicates an  annual devaluation of the dram against the euro and the ruble, with a  revaluation against the dollar.

According to the Central Bank of the Republic of Armenia, there were  two dollar transactions, two euro transactions, and three ruble  transactions  in the foreign exchange market from September 16 to 20  this year. Moreover, trading was conducted in these three currencies  on Monday and Wednesday,   only in the ruble on Tuesday, and the  platform was empty on Thursday and Friday. As a result, during the  reporting week, dollar transactions were concluded for a total of $3  mln at an average rate of  AMD 387.47 dr/$1 compared to AMD 387.42  /$1 the previous week), the total volume of ruble transactions  amounted to 1 bln rubles at an average rate of AMD 4.24 /1RUB  (compared to AMD 4.25 /1RUB  the previous week), and euro  transactions were concluded for a total of 2 mln euros at an average  rate of AMD 430.42 /1EUR.  During the reporting week, the peak volume  of dollar and euro transactions occurred on Monday (September 16) -  $2 mln and 1.2 mln euros, and the maximum volume of ruble  transactions occurred on Wednesday (September 18) - 500 mln rubles.

From September 16 to 20, there was a significant shift in the  interbank foreign currency market, compared to the previous week  (09-13.09.24), the trend of buying dollars saw a 5.6% decline turn  into a 36% growth, while the decline in sales slowed from 22% to  9.8%, the trend of buying and selling euros changed from a 33.1-7.5%  decline to a 18.8-30.4% growth. Ruble transactions remained in  decline, but the rates slowed down from 36.8-27.8% to 9.3-7.8%.  As a  result, during the reporting week, $177.6 mln was bought at an  average rate of AMD 385.94 /$1, over 35.4 mln euros at an average  rate of AMD 426.79 /1EUR, and 8.9 bln rubles at an average rate of  AMD 4.20 dr/1RUB.  $156.4 mln were sold at an average rate of  AMD  388.48 /$1, 76.8 mln euros at an average rate of AMD 433.93 /1EUR,  and 2.98 bln rubles at an average rate of AMD 4.28 /1RUB. The highest  volume of dollar purchases occurred on Wednesday (September 18 -  $51.7 million) with a maximum of sales on Tuesday (September 17 -  $37.96 mln), for euro transactions, the highest purchase volume also  occurred on Tuesday (September 17 - 8.8 mln euros) with a maximum of  sales on Thursday (September 19 - 44.1 mln euros). In ruble  transactions, the largest purchase volume was recorded on Monday  (September 16 - 2.6 bln rubles) with the highest sales on Thursday  (September 19 - 812.8 mln rubles).

In the first half of 2024, the CBA made $366,5.5mln interventions in  Armenia's foreign exchange market only in April-June, with only  purchase transactions effected ($20mln in April, $136.5mln in May,  $100mln in June). The AMD/USD exchange rate was AMD 388.87/$1 this  May against AMD 386.60/$1 last September, when purchase translations  were last effected, with greater depreciation against December 2022  (AMD 393.50/$1).  In the first half of 2024, in the interbank foreign  exchange market, purchases totaled $3.02 bln, EUR 741.5mln and RUB  450.6 bln, and sales totaled $4.9 bln, exceeded EUR 1.95bln and RUB  155.9blm, which formed the following buying rates in June 2024: the  AMD 386.27/$1, AMD 414.07/EUR 1 and AMD 4.37/RUB 1 against AMD  402.72/$1, and AMD 437.90/EUR 1 and RUB 4.43/1 RUB in December 2023.   The selling rates were as follow: AMD 389.58/$1, AMD, 421.33/EUR 1,  and AMD 4.4/RUB 1 against AMD 406.14/$1, AMD 445.57/EUR 1 and AMD  4.5/RUB 1 in December 2023.  In the interbank foreign exchange   market in January-July 2024, dollar transactions totaled $384.6 mln,  18.6 bln in rubles, and 27.1 million euros. (with no transactions in  EUR in June). The AMD strengthened against the ruble to July's AMD  4.41  / 1 ruble, against the dollar to AMD 388.74  / $ 1 and against  the euro to AMD 421.18  / 1 euro, from December 2023, respectively,  AMD 4.47  / 1 ruble, AMD 405.62  / $ 1 and AMD 444.30  / 1 euro.

On the interrbank foreign exchange  market, the largest volume of  ruble transactions (4.5 bln) was made in June, and dollar and euro  transactions in January ($ 92.7 mln and 11.7 mln euros). The currency  exchange platform, after eight years of "silence", made a comeback in  June-July 2024 by conducting dollar transactions for a total of $7.9  mln, leading to a slight devaluation of the AMD from June AMD 388.90  to July 388.91 /$1.  Let us recall  that RUB transactions on the   foreign exchange interbank of Armenia started on March 14, 2022,  with RUB 8.8bln transactions effected until the end of that year,  with RUB 17.5bln transactions effected in 2023. This was accompanied  by AMD depreciation against the RUB in March-December 2022 - AMF 4.86  to AMD 5.8/RUB 1, with AMD appreciation against the RUB to AMD  4.47/RUB 1 by the end of 2023. The foreign exchange stock market has  remained idle for the eight year.