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“AUTHORITIES WANT TO DRAW UP A BUDGET OF 8 MILLION AMD”

Economy

Food prices keep on rising in Armenia despite the ongoing devaluation of the dollar. Economists disagree with the government’s statement that the recent rise in prices is determined by prices at the international market.

Economist Eduard Aghajanov states that the rise is due to monopoly. “To combat the rise in prices the government should break up the monopoly otherwise. Armenia should apply economic methods adopted world-wide,” he says.

For instance if the price of bread goes up, the country should employ its military resources to overcome the intervention of goods, the economist says.

It is upon the competitive commission and tax services to regulate the superprofit of the monopoly.

Generally, tax services review their demands in case prices rise.

The economist made no comments on the depreciation of the dollar. He only noted that the devaluation depends on the authorities’ appetite.

The exchange rate will probably drop to 200 drams as the authorities want to draw up a budget of 8 million drams in 2008.