On October 8, the average EUR/AMD exchange rate was €1/502.24 AMD – a 1.43 AMD decline as compared with October 7.

In Armenia the USD exchange rate is determined by the results of foreign exchange transactions.

That is, in contrast to a number of countries, where the Central Banks determine the average exchange rates between national and foreign currencies, the AMD exchange rate in Armenia is the result of daily supply/demand ratio.

Despite all its strong points, this mechanism is, to an extent, adjusted to the current situation rather than aimed at an exchange rate between the AMD and foreign currencies, which would the optical for the Armenian economy. The result is appreciable AMD/USD exchange fluctuations, which cause confusion in foreign trade operations.

In this respect, the EUR/AMD exchange rate hardy affects Armenia’s domestic economic development. It is of importance for trade with the Eurozone, as well as for Euro transfers to Armenia. The UDS exchange rate is of much higher importance in Armenia and its trade partners.

The world’s leading countries have not yet reached consensus over the international exchange rate. On the threshold of the IMF annual session in Washington, the world has heard report on currency wars, namely, the widely practiced artificial exchange rate appreciation of national currencies aimed at stimulating exports. China has become the world’s largest exporter due to this policy.

The opposite situation can be observed in Armenia. The IMF, which is struggling against artificial appreciation, has always commended the Armenian Central Bank’s policy. However, Armenian exporters’ opposite opinion is ignored.