The strengthening of the Armenian dram curbed the growth of inflation. Governor Martin Galstyan of the Central Bank of Armenia (CBA) said this during Monday’s debates on the execution of the 2021 state budget, at the meeting of the Standing Committee on Financial-Credit and Budgetary Affairs of the National Assembly—and when asked why the strengthening of the national currency did not lead to a proportionate decrease in the prices of imported goods in Armenia.
According to him, in other circumstances the rates of price increase would be more significant.
"One of the reasons that the strengthening of the dram exchange rate did not lead to a decrease in prices is the sharp rise in prices in international markets," the CBA chairman assured.
He noted that due to the ongoing Ukrainian war, wheat prices have reached a historic high. The prices of sunflower oil have increased considerably. And another reason for the current situation is the arising logistical problems which are related, in particular, to the capacity of the Upper Lars checkpoint on the Russian-Georgian border, as well as the increase in transport costs.
"Taking into account the noted, it would be wrong to speak about the need to regulate prices exclusively on the basis of strengthening the national currency. In my opinion, all the factors should be taken into account," Galstyan said.