Economist expects resignation
"If Armenia were a normal country, the administration of the Central Bank would file a resignation," said economist Vahagn Khachatryan.
The CBA neglects its main functions - it fails to forecast and contain inflation.
"A few days ago, Arthur Stepanyan, a senior CBA official, forecasted 9% inflation in Armenia. The forecast should have been given in December 2010, during the formation of macro-economic indicators of the budget (4+,-1.5%), when the inflation in the global market was expected to reach 2,5-3%. It would enable Armenian authorities to draw up a realistic budget" the economist added.
According to Vahagn Khachatryan, the high inflation is determined by the oligarchic nature of the Armenian economy.
"If the country does not have a free market and does not fight against monopolies, the Central Bank cannot pursue a policy of floating exchange rate. The CBA continues its policy of fixed exchange rate."
