Armenian national currency overestimated by 27-30%, independent expert

Manaseryan is sure that appreciation of national currency hinders strengthening competitiveness of goods and services of local producers. It is not the only factor to hinder economy, there are also economic and political factors, he said. Nevertheless, the expert is sure that the process of the appreciation of Armenian dram results in rise of prices of goods both produced in the country and imported.

“Over the last months our currency proved the strongest currency in the world even comparing to dollar, euro and pound sterling”, he said.

Such control of exchange rate may lead to large-scale panic among the population and resumption of dollarization. In such situation the expert thinks that to gradual reduction of the Armenian dram rate in the background of devaluation of the basic world currencies would be the most justified step.

He advised the economic leadership of the country to wage more flexible monetary policy. The expert said the control over the rate that was to lead to reduction of prices in the country actually leads to rise of import prices since the prices for imported products are left unchanged despite the landslide cut of prices in the world market. This also affects the solvency of the population and increases social tension.

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