Exchange rate passions
Babken TUNYAN | January 31, 2012
The behavior of the US dollar exchange rate has been very strange in the recent times. Yesterday there was not foreign currency transaction in the NASDAQ OEMEX Armenia. The same thing happened on January 26 as well. In fact two days the buyers and sellers of dollar could not come to an agreed price. The demanded price of dollar was 386 drams for one dollar, but the price of supply was 387.5 drams. This means that there is instability with dollar, and even though the situation seems to be stabile, banks are waiting too. It is understandable why the foreign currency exchange market participants are confused because the tendencies with the exchange rates have been in contrary with the predictions during the past 1-1,5 months. During the past years the price of dollar used to go down before the New Year time because most of families used to spend dollars in order to buy food for the celebration times. People working in other countries used to also send money to their families or return home with money in the pockets.... [full story]
Who cares about migration?
Babken TUNYAN | January 28, 2012
The National Statistics Service (NSS) has published the report for 2011. The economic activity (growth) rate was 5.9%. The sectors of production and agriculture have grown by 14.1%. Other sectors have grown as well (besides the sector of construction), the export growth is more than the import growth. In a word, these statistical data are not the best but are not bad either. Certainly the minister of economy Tigran Davtyan would be happy for such information and claim that his predictions had come true. Of course it would inspire him to speak about the future as well, specifically concerning the sector of production. In such situation journalists would ask him if the situation with the economy is so good why people emigrate and why migration is becoming more intensive. “Migration is not included in this sector,” said Tigran Davtyan. Davtyan is a professional man but he thinks that migration is not connected with the economy. Simply he decided not to discuss and touch upon this issue because there...
We will meet the crisis with more vulnerable positions
Babken TUNYAN | January 21, 2012
While the political powers are discussing how to make teams for the elections, how to criticize the other powers, certain processes are happening in the world that may break all their plans. This concerns not only sanctions against Iran but economic processes in the world. The World Bank has published its report entitled Global Economic Prospects 2012: Uncertainties and Vulnerabilities. The World Bank has reduced its predictions concerning the Euro zone almost twice, and for the world economy – by one point. According to this publication, the growth of the world economy will be by 2.5% (the prediction was 3,6% six months ago). The Euro zone economy can be cut down by 0,3% instead of the expected 1,8% growth. If there are optimists who think that we are out of the world tendencies and our system is more or less closed and cannot be hit by the crisis, the WB informs that the crisis will first of all hit the developing countries. It would be correct to say that the processes have already hit the developing...
1.8 million dollars in cash
January 21, 2012
Today the government will discuss and most possibly will approve the initiative on cooperation agreement between the RA government and the International Financial Corporation. For this project the IFC will provide 1.8 million dollars in cash, and the government will spend 181.8k dollars (in the natural form). During January 2009 - September 2011 the IFC implemented the advisory project entitled Armenia Regulatory Simplification – Doing Business Reform. Since September 2011 the IFC is implementing the project entitled Improvement of investment environment advisory project, which will be finished in September 2014. The goal of the new project is supporting the government improving the investment environment of Armenia through cutting down the time and expense limits for starting and making business in the following four sectors: simplification of tax policies, export and import, inspections, food security. For the purpose of the mentioned project the IFC will provide technical support to Armenia...
From extreme to extreme
Babken TUNYAN | January 19, 2012
Prior to the end of the New Year celebrations the Armenian parties have been actively involved in the pre-election campaigns. The press conferences and discussions on various themes have become more frequent. The government is especially active when it comes to economy. The economic picture of the previous year is not fully clear yet. The macroeconomic results will be publicized in a few days. However, it doesn’t hinder them from advertise the achievements of the previous year without extra modesty. They name those unprecedented. Moreover, all the pro-government officials claim that 2012 is going to bring better data. They say that there have been numerous reforms in 2011 and the results will be visible in 2012. This gives us ground to think that the current government came to power only in 2011 and had managed to do so many reforms. Physically it was impossible to do that in 2008, 2009 0r 2010. Of course they have an answer to that too – the global economic crisis. This is the same crisis, which our...
On the way to meet the “two- headed” dragon
December 27, 2011
It turned out that the current year which was not quite successful for Armenia, ended with an event that is positively accepted by Armenians. Of course we mean the adoption of the French bill that criminalizes the rejection of the Armenian Genocide. Indeed, it still needs to be adopted by the Senate; indeed, it has certain motives; indeed, it doesn’t console our compatriots who are on the margin of poverty, destitution and took on the route to migration, however, we have no doubt that this event is going to be one of the holiday messages of our government. Of course our government did not play any role but the decision of the French MPs will be swiftly ascribed to the spectacular role of the Armenian authorities and the indispensible achievements. Have there been successes in the socio- economic sphere? More or less, yes. We are sure that those successes will not skip the attention of our authorities either. If we speak of the economic situation, then we should note that the macroeconomic indexes provided...
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Under the influence of “cognac production”
December 8, 2011
The authors of a document presented during the RPA’s economic conference at Tumo center assure that in case of paying due attention to 11 priority sectors of the economy the export capacity would grow up to 3.5 billion dollars in 2015, and in 2020 – to 5.5 billion. It is worth mentioning that currently Armenia’s export is 1.2-1.3 billion dollars per year. The government so far has presented analysis of three sectors such as the pharmaceutics, cognac production and precise architecture. Time will show whether these calculations are realistic (in case if the RPA win the upcoming elections and try to make this plan come true). If the parties fail to provide drastic development in the mentioned sectors, it is possible to provide the mentioned export capacity of 3.5 billion dollars on the account of growth of mining sector products international prices. By the way, the export growth so far was due to inflation....
Didn’t they know that winter would come?
December 1, 2011
“Whatever they say, the fact is that we were going to get ready for the winter and had prepared the technical facilities not to have problems. Didn’t the other freight forwarding companies know that winter would come? They would be better to act too because it is almost twenty years that they are in the market. Instead of working they are spreading rumors and making it a topic of discussion,” said Davit Ghazaryan, director of Spayka freight forwarding company, when commenting on the rumors that his vehicles can pass the Upper Lars border point as he has the support of the prime-minister. D. Ghazaryan said that they have new offroad carriers, which help them to carry their trucks in difficult areas. The director of Spayka company assures that they are ready to help other companies too. However, the problem is that the area is so bad that even these offroad carriers may have accident. But the director of the Spayka company assures that if other companies take the responsibility, they are ready...
We are in the last place
October 22, 2011
According to the report of economic analysis center RIA-Analitica, among 29 European countries Armenia occupies the last place with the minimum salary rate. The starting point was chosen the rate, below which salary is prohibited by the law. In Armenia the monthly minimum wage is 86,8 dollars. The next ones after Armenia from the end are Moldova with 95,4, Azerbaijan with 108,1 dollars rates. Russia is in the 23rd place with 165 dollars rate. The first one in the list is Luxemburg with 2,513 dollars minimum salary rate. The next two countries after the first one are Ireland with 2090 dollars and Belgium with 2064 dollars salary rate....
Itera is interested
October 22, 2011
According to our information, Russian Itera Development Group is interested in buying Nairit company. This Russian company is included in a large group of international companies Itera, which used to owe 5% in ArmRusGazArd company, which was sold to GazProm in 2008. This information is interested in consideration of another piece of information published one day before that. Two days ago the security council secretary Artur Baghdasaryan announced that a Polish large company was interested to buy Nairit and they were negotiating with them. Definitely the Russian party is jealous with the negotiation and talks with the Polish company and has entered into the game. By the way, there is another interesting fact with Itera. Former minister of economy Gagik Martirosyan is included in the leadership of this company and he coordinates the development directions of the Itera, as well as is the deputy chairman of another company involved in that group, Itera International Energy. This is very interesting in consideration...
We are in the last place
October 22, 2011
According to the economic analysis “Ria-Analitica” center Armenia occupies the last place in the rating of the countries with lowest minimum salary. They have picked the lowest starting point, which cannot be any lower according to the law. In Armenia the minimum monthly salary is 86,8 USD. The next places are occupied by Moldova – 95,4 USD, Azerbaijan – 108,1 USD. Russia is in the 165th place with its minimum 108,1 USD salary. The leading place occupies Luxemburg, where the minimum salary is 2513 USD. The first three ranks also include Ireland – 2090 USD and Belgium – 2064 USD....
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