Open news feed Close news feed
A A

SOCIAL OUTBREAK POSSIBLE

Economy


For some unknown reason, the Euro exchange rate goes down, while the dollar remains the same during this global economic meltdown.


“It is senseless to find logic when discussing any process taking place in Armenia because only subjective factors are at work. Somebody makes the decision,” told “A1+” economist, former head of the Central Bank Bagrat Asatryan. According to him, the fixed dollar rate is kept at 305 drams, while the Euro goes along with the processes taking place in the global market.


Why did they decide to keep the dollar rate stable? In response, Bagrat Asatryan said:


“They’re not thinking ahead. The Armenian economy has traditionally used the foreign exchange rate, although a large part of our foreign trade is in Euros.”


The National Assembly and the government don’t plan to revise the budget. Why aren’t they doing what other countries find necessary?


“First of all, they are certain that they will implement all programs and secondly, they don’t care about the budget thinking that it is not going to have an effect,” said Bagrat Asatryan. Former head of the Central Bank thinks that a social outbreak is possible in an unfavorable political situation like the one in Armenia.


The country was faced with a social-economic crisis in the 90s too, but back then people overcame that crisis because, according to experts, they had expectations, there was confidence, but that turned into distrust in the government.


“Now we see apathy and anger conditioned by the political situation. Before, people found the solution by moving to a foreign country. Now, Armenia is turning into a closed sector where the steam is rising and a way out of the situation is change of power through normal elections. Our authorities did not consider that a way out of the situation and told people that they had to cope with their government, plus the murders of last year. The denial of the existence of one sector, keeping hundreds of people locked up in jail-these are the factors that prepare grounds for extreme manifestations,” told “A1+” Bagrat Asatryan.