“DOLLARIZATION” LEADS TO VULNERABILITY OF ARMENIAN ECONOMY, IMF REPRESENTATIVE SUPPOSES

The high level of dollar circulation in Armenia leads to vulnerability of the economy, International Monetary Fund (IMF) representative in Armenia James McHugh told “Liberty” radio station. In his words, “dollarization” can have a negative impact on the economy of Armenia due to the fact that European Union countries are trade partners of the country. The circumstance can also tell on the exchange rate of the Armenian dram, McHugh said. Meanwhile, in his words, the government and the Central Bank of Armenia have done a good work to keep inflation at a relatively low level. The IMF representative noted that stability was attained owing not only to IMF favorable credits, but also efficient actions of the republic leadership. “Thereupon, the national currency exchange rate is stable, and I am sure the stability will be sustained,” McHugh said.