DRAM IS DEPREIATING

Support A1+! The exchange rate of the dollar and euro has gone up at interchange stations. We wanted to keep our savings in terms of Armenian dram, but now we are in two minds. They said the dollar rate would no longer go up, but it became 310 drams from 302 in a week,” Yerevan resident Amalya Hovhannisyan said to A1+. “My daughter sends dollars from the United States, and I am pleased with the dollar appreciation,” said pensioner Anahit Gevorgyan. Economist Andranik Tevanyan is convinced that the dollar rate will keep on increasing in Armenia due to the reduced flow of the dollar. “The flow of private transfers and allocation of the dollar in different building projects will be curtailed,” said Tevanyan. The dollar rate is evaluated 303 drams by the state budget 2009 but the economist thinks it will be still higher. Making advance predictions is a thankless task in Armenia, as they intervene with the currency rate and avert fluctuations in the rates of exchange. For instance, the dollar rate wobbled in the world this January while it never went down 300-305 drams in Armenia. The economist considers it as nonsense and thinks it is inefficient to artificially slow down inflation. “The situation will become more complicated next year, and if the government decides to keep up the exchange rate, we shall appear in a serious jeopardy, as the values of dram and dollar will sharply fluctuated.” Andranik Tevanyan advised Armenians to have separate “exchange baskets” to keep the U.S. dollars, European Euros and the British pound in. “I wouldn’t advise keeping savings in terms of dollars and rubbles. Russia has already declared about the devaluation of the rubble. Generally, it is recommended that people buy gold and keep their savings in that way,” says the economist.