IMF WELCOMES PRUDENT MONETARY-CREDIT POLICY OF CBA
13-12-2006 15:33:00 | Armenia | Economy
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.