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March 29
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We are in the middle of a crisis that has not happened to us for at least the last 40-50 years. So, we know that there is a phenomenon called "inflation," and even in countries like the United States, inflation has been recorded, which probably last happened to them in the 1980s. The governor of the Central Bank of Armenia (CBA), Martin Galstyan, stated this Wednesday during the Orion Summit 2022 (PHOTOS).

"The mandate of the Central Bank is to ensure price stability and a predictable price trajectory for the economy as a whole, and we use the exchange rate as a tool. I do not want to accept as a compliment that our [national currency] dram is strong; it is an exogenous factor that is happening to us in connection with foreign visitors to Armenia. It is conditioned also by the growth of exports from Armenia," he said.

The CBA chief noted that these days one can see many foreigners in the evening at restaurants in Armenia.

"All this, according to statistical rules, needs to be registered as an export. Consequently, we are witnessing an incredible increase in exports and imports, which, naturally, leads to the rise of the national currency.

Now the call of the society—especially the exporters—is to artificially devalue the Armenian dram. They call on the Central Bank to intervene and devalue the Armenian dram, which should probably help the Armenian exporters to be more competitive abroad. But is a 5-10% devaluation of the dram the stimulus needed by Armenian exporters to be effective?

In my opinion, this is not a solution; the solution is to be unique. So, if we want to be unique, there are a few things we need to do together. So, I do not rely only on the artificially devalued exchange rate as a tool of our innovation policy," said Martin Galstyan.

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