“PEOPLE WILL RUSH TO ARMENIA TO WORK AS CLEANERS”

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“Dollar-dram fluctuations in Armenia are rather determined by a mutual criminal consent between Armenia’s President and the Central Bank than by rise in prices at the international market,” Armenia’s former premier Hrant Bagratian told A1+.

According to Mr Bagratian, the international market affects the fluctuations only by 20 per cent.

Other currencies (euro, rubble) are also devaluating in Armenia. This is resulted by the CB's inadequate monetary policy.

With regard to the general belief that the dram is gradually stabilizing in Armenia, the former premier said, “It is a sheer nonsense. Our economy is rather shaky. The country mainly depends on foreign transfers flowing to Armenia from different angles of the world. To my mind, long-term developments do not nurse great hopes. Entrepreneurs only care for there quotas. Nobody is concerned over production.”

Bagratian says the CB fully realizes that its policy endangers the country.

The Central Bank assures both the president and the prime minister that their policy is the wisest as everybody benefits from it.

Asked the question why the dollar depreciation doesn't result in reduction of prices, Hrant Bagratian said, “The reason is obvious. Everything is monopolized in Armenia. Just imagine, a cleaner's salary is raised from 30 000 AMD to 300 000 in Armenia. People will rush to Armenia to work as a cleaner. The policy followed by the authorities cannot last long. I think dram revaluation will last for another half a year and then everybody will come to realise that Armenia is lacking sound economy. The prices in the country will surpass those of international markets. Shortly afterwards the dram will abruptly devaluate.

“People will not pay an exorbitant price for flats in Armenia as they can afford one at the same price in other capitals of the world.”