YEREVAN, JANUARY 20, NOYAN TAPAN. This year Armenia's GDP will grow by 7-8%, while inflation will make about 4%. Announcing these forecasts of the Central Bank of Armenia (CBA) at the January 20 press conference, the CBA Chairman Arthur Javadian at the same time said that the deflationary pressures are quite great and may affect the economic growth of the country. He assured those present that the government will take a number of large-scale measures in this direction. A. Javadian said that Armenia's currency policy will not undergo any changes, and the CBA will continue its policy of "floating" exchange rates. In his words, taking into account the the not very much favorable situation in the international financial market and the global financial crisis, today it is extremely important to maintain the stability of Armenia's financial system. The intervention of the CBA in the currency market is conditioned by this fact. This intervention will be temporary, but it is still unclear how long it will last. A. Javadian denied the rumors that the CBA allegedly sold about 100 million dollars in January. Advising citizens to keep their savings in the national currency, he noted that the Armenian commercial banks establish higher interest rates for deposits in Armenian drams than for those in foreign currency.

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