400 Dram to the Dollar? Devaluation of Armenian Currency

The predictions of many experts seem to have come true as the local Armenian currency, the dram, has dropped in value. Currently, in the best case scenerio in Armenian banks, a US dollar can be purchased for 402 dram, while a euro goes for 555 dram.

According to Rate.am, at 1:30 pm local time today, a few banks were even selling US dollars at 405 dram and euro at 561 dram. Buying rates, however, fluctuated between 395 and 400 dram to the dollar and 542 to 550 to the euro. At 10 am this morning, a US dollar could be purchased for 398.5 from Anelik Bank, while a euro could be purchased for 549 dram at Artsakhbank.

This devaluation of Armenian currency began only in the last 1–1.5 months. On February 2, the going rate was 375.8 dram to the dollar; it has risen quite drastically in such a short period.

Few reasons might account for the devaluation: a shortage of personal transfers from abroad, perhaps a big difference in export and import volumes (import being noticealy greater than export), high quality of inflation, and so on.