“Since the monetary policy in Armenia is not based on simple market rules, administrative intervention has always been and will continue to be there,” said Member of Parliament Artsvik Minasyan, ARF Dashnaktsutyun, commenting on recent currency fluctuations.
He says the rate of the dollar must be fixed, otherwise it will cause instability for the foreign debt, while it may lead to “bankruptcy” in terms of international commitments. According to Minasyan, it is unacceptable for the international community, first of all the International Monetary Fund and the World Bank.
“Although I think it is an incorrect and inflexible policy because artificial maintenance of the exchange rate will further squeeze the local producers, and on the other hand, reduce the currency flow to the country,” he said.
Artsvik Minasyan is convinced that if some changes are implemented, we will have a more realistic exchange rate. The prohibition of investments in foreign currency does not boost the country’s development. Minasyan thinks this restriction must be eliminated for some spheres. “The stocks of companies must be issued in foreign currency not to pose the foreign investor to the risk of dram-dollar rate. It is the following – at any moment every entrepreneur must know the fixed rate and amount of dollar he or she can buy,” Artsvik Minasyan said.
At the same, he says the Armenian banks are out of control, and the banking psychology is already governing the economy and the country. According to Minasyan, it causes disproportion in economy. Even though it is good from a subjective point of view, it is unacceptable from the point of view of the development of the economy.