Armenia rolling off the cliff
By Mushvig Mehdiyev
"The Armenian people has lost its hope for today and tomorrow" is the main common expression on the Armenian media amid the ongoing financial trouble.
Haykanak Zahamanak newspaper writes: "The most often assessment of the current financial situation in Armenia's socio-political life is that the people has lost their belief and hope for tomorrow. Namely this is behind the large-scale emigration from the country. The events happening in Armenia over the recent weeks related to the dram's devaluation and hour by hour increase in prices deprived the residents of a belief for today and tomorrow."
Armenia is observing tougher economic days over the recent months, as serious financial challenge hit the country to roll it off the cliff. Eliminating the dram's sharp depreciation and dollar's surging appreciation in local foreign exchange markets has turned into a mission impossible for the Armenian authorities. While one dollar is buying nearly 500 drams, the Central Bank has its hands tied to stop the worst ever financial trouble in the country.
Although the government and the Central Bank make statements to avoid panic among people, dram's fluctuation continues to threaten residents by kicking the prices up.
Gukas Ulikhanyan, Consultant for the Health Ministry, said prices of medications grew by 5-10 percent in Armenia due to sharp fluctuation between dollar and dram rates.
Increase in prices of vegetables was the major factor to define inflation over the last month, according to Gurgen Martirosyan, Department Head of the National Statistics Service. He said about 23 percent surge in vegetables' prices considerably affected the overall 1.3 percent inflation rate in Armenia, in November.
Meanwhile, Prime Minister Hovik Abrahamyan voiced his concern over certain processes, including an increase in prices of granulated sugar, flour and some other basic foodstuffs, at the session of the Ministerial Cabinet, on December 18.
A day later, on December 19, Abrahamyan emerged on the streets of Yerevan in a raid to personally check the prices on markets. Armenian media welcomed the premier's mentioned step as his "new status", as he ignored the State Commission on Protection of Competitiveness and decided to inspect the price hike himself.
Moreover, the media called on Abrahamyan to start the inspection firstly in his own petrol stations, where the prices skyrocketed to make the bus and taxi drivers leave behind wheels and rally against illegal hike in gasoline prices.
Current price for a liter of LNG is 210 drams ($0.45) in the petrol stations in Armenia, which is viewed as high by many drivers.