The strengthening of the national currency has curbed the growth of inflation
The strengthening of the Armenian dram dampened the growth of inflation. Governor Martin Galstyan of the Central Bank of Armenia (CBA) said so during Monday’s debates on the execution of the 2021 state budget, during the meeting of the Standing Committee on Financial and Budgetary Affairs of Armenia. National Assembly – and when asked why the strengthening of the national currency did not lead to a commensurate decline in the prices of imported goods in Armenia.
According to him, in other circumstances, the rates of price increase would be greater.
“One of the reasons why the strengthening of the dram exchange rate has not led to lower prices is the sharp rise in prices in international markets,” assured the CBA chairman.
He noted that due to the ongoing Ukrainian war, wheat prices have reached historic highs. Sunflower oil prices have increased significantly. And another reason for the current situation is the appearance of logistical problems related, in particular, to the capacity of the Upper Lars checkpoint on the Russian-Georgian border, as well as to the increase in transport costs.
“Given what has been noted, it would be wrong to talk about the need to regulate prices exclusively on the basis of the strengthening of the national currency. In my opinion, all factors must be taken into account,” said Galstyan .