16:05 . 29/05
USD exchange rate will not fall to the point from which it started rising, the head of the chair of finance and accounting of the Faculty of Economics of Yerevan State University Hayk Mnatsakanyan is sure.
There are three exchange rate regimes: fixed, pegged float and floating. Our country adopted the floating exchange rate regime, which is regulated by market mechanisms, that is based on the demand and supply. The economist explains the exchange rate fluctuations by internal and external factors. Those spending their holidays abroad are in demand of a foreign currency and this is seasonal: last year, too, similar fluctuations took place during this period. From external factors the economist mentioned the oil market price fluctuations which also have their influence on the exchange rate.
AMD’s depreciation is directed to increasing export volumes but one shouldn’t forget how much we import. In that case, of course, the prices on the imported goods will tend to rise.
“The international experience usually brings about the following approaches. First and foremost in case of a market economy the state interference with the market mechanisms is as little as possible. It interferes only in cases when it is necessary to limit or to minimize the risks and sharp fluctuations. For example, according to the data of the past quarter, the Central Bank sold about $37mln. If the fluctuations exceed the guiding limits, I am sure such measures will be implemented in that case, too,” the chair said.
