YEREVAN, DECEMBER 13, NOYAN TAPAN. The IMF Executive Board welcomed the prudent monetary-credit policy of the Central Bank of Armenia (CBA) that aims to maintain price stability. Nienke Oomes, IMF Yerevan Office Resident Representative, stated this during the December 13 press conference. According to her, the IMF Executive Board also approved the floating exchange rate policy that the CBA has conducted for the same purpose. N. Oomes said that the CBA's intervention in the foreign currency market to smoothen sharp fluctuations without setting a target level of exchange rate was also assessed positively. The IMF Executive Board takes the view that resisting nominal appreciation pressures may lead to high inflation, which may have a negative impact on the vulnerable groups of the population and the economic growth. According to the IMF, there is no definite evidence of the Armenian dram's being overvalued, while the best way to resist the danger posed to competition is to conduct a policy of promoting productivity growth, including improvement of the business environment and encouragement of competition.

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