One of my friends used to have a dog. I don’t know what kind of dog it was, but I can say that Armenians call that dog and dogs like that “puppies”.
This puppy had an interesting character. Whenever it was alone, it would cuddle up in a corner and tremble with fear, even when a child was passing by. But as soon as it saw his owner, the puppy would start to bark and attack people. Then they told me that almost all puppies are like that. Whatever…
Now let’s draw an unusal comparison between the puppy and…the Armenian dram. Despite the criticisms and the threats, the Armenian national dram was higher than the big “wolves”-the dollar, the Euro, any exchange rate. What happened? What happened was that the President of the Central Bank of Armenia Tigran Petrosyan left for Mexico for a couple of days to participate in the 14th international conference for Bank Presidents and while Mr. Sargsyan was discussing issues concerning world financial stability and other issues, his pupp…excuse me, the national exchange rate went down in Armenia and started retreating-the price for one dollar went up from 366 dram to 385 drams.
But fortunately, the owner came back soon. As soon as he returned, the dram started “
”losing teeth” and went down. The exchange rate in some exchange points was 376 drams during that period.
Before the “rebirth of the puppy”, for a while people thought that they could take a breath, thinking that the authorities have finally decided to fight against this. But as we know, every good thing starts and ends. So, the inspiration only lasted a couple of days.
According to the bank officials, the reason for the shortage of the devaluation of the dram was due to the fact that the Central Bank had purchased a large amount of money for selling. Upon his return to Armenia, T. Sargsyan took part in the “Financial Transfers-Banking Services” third international bank conference.
It is worth mentioning that the people of Armenia are starting to have a negative attitude towards the title financial transfers. But the banks have nothing to do with that, it’s just that the Armenian authorities bring up the transfers when talking about exchange rates. It turns out that the reason for failures in industry is the carelessness of the Armenians living aboard towards their relatives living in Armenia. Armenians get the same feeling when hearing the word “transfers” as Americans do when they hear “tornado”.
Upon his arrival from Mexico, T. Sargsyan made an interesting offer for companies involved with money transfers. The companies must give Armenians living abroad the opportunity to make transfers in Armenian dram. So, the Armenian living in Moscow who earns money in dollars who wants to transfer money to Armenia can exchange the dollar for dram and send it to Armenia. The offer is interesting, but a question comes up: will the Armenians living abroad take advantage of that opportunity? Secondly, the Central Bank can prevent further evalution of the dram by purchasing the currency coming from abroad. Now try and imagine that the bankers agree to make money transfers in Armenian dram, but the people sending the money from abroad decide to do it differently. It turns out that each year, the financial market of Armenia must have an inflow of the Armenian dram equivalent to 700-800 million dollars. The transfers sent increase two-fold. How will this affect the inflation rate? We’ll try to give the answers to this and present them in our next article.
P.S. In the end, I would like to add that my friend’s puppy got run over a car and died, but I’m not hinting anything else.