assessment of Key factors of the foreign Exchange Rate formation in armenia

Sandoyan, Edward; Voskanyan, Mariam A.; Galstyan, Ani

doi:10.26794/2587-5671-2018-22-5-27-39

Cited by 3 publications

(3 citation statements)

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“…As we have shown in our research papers (e. g., [27]), despite the declared floating exchange rate policy, the CBA nonetheless de facto conducts a managed, sometimes even fixed exchange rate regime. Among the factors directly influencing the exchange rate of the Armenian dram we can distinguish market channels, as well as non-market mechanisms applied by the monetary authorities.…”

Section: The Impact Of Foreign Exchange Rate On the Export Potential mentioning

confidence: 57%

The Impact of Currency Regulation Policy on the Country’s Export Potential: The Case of Armenia

Sandoyan

Galstyan

2020

jour

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The impact of currency regulation on the country's export potential has been the focus of scientific research and discussion among economists for years. Currency regulation is a backbone element to maintain the competitiveness of the country's economy, macroeconomic stability, and to stimulate economic growth. The aim of this research is to analyse the impact of the exchange rate of the Armenian national currency (dram) on the country's export potential, as well as the choice of a currency regulation policy stimulating export expansion and economic growth in Armenia. The study employed the methods of statistical and comparative analysis, as well as the construction of logistic assumptions. The authors conducted a statistical analysis of the dynamics and structure of Armenia's exports by product groups and countries. They revealed that, with the exception of exports to Russia, Armenia's exports to other countries has a high ratio of raw materials. As known, the exchange rate has the greatest impact on the price competitiveness of finished products in foreign markets. The authors evaluated the impact of currency regulation policy implemented in Armenia on the export potential and competitiveness of Armenian goods, especially in the EAEU markets. The results show that Armenia is not able to maximize its export opportunities due to the uncompetitive exchange rate of the national currency. The key conclusion of the research is the thesis that Armenia should abandon the non-market mechanisms for ensuring exchange rate stability, the Central Bank should immediately shift to a policy of free-floating national currency and non-intervention, which will significantly expand the presence of Armenian finished products in foreign markets, especially in the Russian Federation.

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Section: The Impact Of Foreign Exchange Rate On the Export Potential mentioning

confidence: 57%

The Impact of Currency Regulation Policy on the Country’s Export Potential: The Case of Armenia

Sandoyan

Galstyan

2020

jour

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“…Currency regulation in Armenia also stands for the principle of maximum macroeconomic stability, which is clearly demonstrated by the long-run policy of the Republic of Armenia's Central Bank to maintain the exchange rate of the national currency (Figure 5). Until 2021, the monetary authorities actively intervened in the foreign exchange market in order to keep the exchange rate at a certain level [Sandoyan, Voskanyan, Galstyan, 2018a, 2018bVoskanyan, Galstyan, 2021]. As a result, the Republic has experienced three currency crises, accompanied by a sharp collapse of the Armenian dram exchange rate against the US dollar.…”

Section: Journal Of New Economymentioning

confidence: 99%

Government policy to maintain macroeconomic stability: The case of Armenia

Voskanyan

2022

Journal of New Economy

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Macroeconomic regulation has always been one of the most pressing economic issues. The paper intends to assess the impact of the government policy on maintaining macroeconomic stability on the economic growth in the Republic of Armenia. Methodologically, the study relies on the propositions of economics; applies methods of qualitative and statistical analysis, observation and synthesis. The data are sourced from the National Statistics Service of the Republic of Armenia and the Central Bank of the Republic of Armenia. The paper considers the key theoretical approaches to the policy on maintaining macroeconomic stability and the major tools of its implementation, identifies positive and negative consequences of this policy for Armenia’s economic growth. The analysis of the monetary, currency, and fiscal policies of the country proves that the policy of macroeconomic stability adopted during the last 10 years leads to the decreasing rates of economic growth, especially in the long run. The ambiguity of the said policy in terms of the efficiency and balance of its outcomes confirms the necessity to reconsider its relevance in the emerging economies.

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“…has been and is currently ensured by efforts of monetary authorities [20]. The analysis of the formation factors of the exchange rate indicates a rather low participation of market factors in this process, while the role of monetary authorities is big [21,22].…”

Section: Fiscal Dominance: Public Debt and Exchange Ratementioning

confidence: 99%