Armenian population good at selling U.S. dollars
January 12, 2011 | 14:49
The Central Bank of Armenia (CBA) reports that it sold a total of U.S. $30 million December 27 to 30 to prevent rapid AMD depreciation. U.S. dollars were sold at an average exchange rate of 362.72 AMD/U.S. $1. The last days of every December threaten with AMD depreciation, as businessmen carry on New Year trade, summing up the year and converting part of their AMD incomes into U.S. dollars. Evidence of great demand for U.S. dollars is that exchange offices sold a total of U.S. $140 million dollars, whereas they purchased only U.S. $90 million, at the end of last year.
Last December, demand for U.S. dollars exceeded supply, which is a rare phenomenon in the Armenian financial market. December 20 to 24, when exchange offices purchased as much as U.S. $95 million from the population, they had to sell a total of U.S. $105 million.
Last December, the Armenian population sold around U.S. $400 million AMD by means of exchange offices, which is a rather high figure. As regards sharply increased demand for U.S. dollars, it can be accounted for by the repayment of short-term loans in terms of U.S. dollars. In the crisis year 2009, most loans were short-term ones and issued in terms of U.S. dollars.