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CB INTERVENTION ON INTERBANK MARKET HAMMERS DEMAND FOR USD ON CURRENCY RETAIL MARKET The 1.4% devaluation of AMD against USD on the currency retail market has led to an increase in the USD rate from 580/582 AMD to 585/590 AMD. Such a rate was registered Apr 9. However, the CB reacted to this in time by selling currency to banks at 580 AMD/1 USD thus hammering the demand for USD and beating down its rate. As a result, the USD rate dropped to 584/586 AMD on the currency retail market and to 580/585 on the bank market. Experts say the CB's reaction has remedied the situation on both markets, though it was slightly belated. On the whole in Apr AMD devaluated by 1.9% against USD on the currency retail market and by 0.7% on the interbank market. The exchange rate of commercial banks devaluated by 1.5% during the period, while the CB settlement rate grew by 1.3 points to 578.28 AMD/1 AUD. Experts say the flactuation of the USD rate and the reduction of the AMD liquidity on the bank market affected the securities markets as well. Demand there dropped resulting in a rise in yield. As a result, a one-year tranche of GTB worth a total of 700 mln AMD was placed with the demand for it totalling 714 mln AMD and the yield 13.7%. Nevertheless, experts stick to their previous forecast that the currency rate will drop to 575 AMD/1 USD by mid Apr. According to the CB, the minimum rate on AMD credits has been increased from 10% to 17% on the interbank credit market over the last week, while the maximum rate was reduced from 31% to 28%. As for interbank AMD deposit rates, the maximum rate was raised by 1%, while the minimum one was reduced by 4%. The monetary base decreased by 812 mln AMD to 75.436 bln AMD during the period due to a decrease in internal and external assets. The money supply dropped by 878 mln AMD to 162.405 bln AMD. The volume of circulating cash decreased by 996 mln AMD to 58.9 bln AMD and that of AMD call deposits by 1.338 bln AMD. Time and saving deposits grew by 455 mln AMD to 89.965 bln AMD. Currency deposits both time and call grew by 562 mln AMD to 82.366 bln AMD. 9 April |
