Cypriot banks and RA economy
Currency of dollar is increasing. Economist Samvel Avagyan mentions that there are quite different reasons or the variation of dollar currency but first of all it is connected with the recent closure of banks in Cyprus.
"Cyprus Company is the main stockholder of one of 5 most important and largest banks of our banking system. Besides in our banks Russian banks are also pretty well presented, which have financial losses in Cyprus nowadays", - he says.
Any kind of sharp fluctuation of dollar exchange rate, regardless of the direction the country, has a negative impact on the country's economy. In the case of devaluation of dram the exporting sectors of the economy benefit. Instead in internal market increase of prices is almost inevitable.
"At this moment for our economy is more profitable not to have "strong" dram (AMD), since we have a problem to increase exports and to reduce imports. Our importation is 3 times larger than our exportation which is absolutely abnormal ratio", - the economist says.
However, the consumers will not be satisfied with dollar's increase: "Imported goods will increase their prices and will be more expensive
