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Armenia's Central Bank: Devaluation of the Dram Will Assist Country's Exports

In a curtly worded statement explaining the fall of Armenia’s national currency, the Dram, to 435 Dram per US$1, Armenia’s Central Bank today stated that the recent correction is in line with recent regional and international financial developments.

The Central Bank noted that after consulting with all financial market players, it believes that the current exchange rate fully reflects such developments and is now in the realm of stabilization.

Putting a positive spin on the Dram’s devaluation, the Central Bank said that the rate would increase the competitiveness of Armenian exports and facilitate economic growth in the country.

The Central Bank added that it has sufficient foreign exchange reserves to smooth out, via market intervention, any drastic rate swings. 

Comments (1)

Raf
This is probably one of the only good things that this government has done in the last few years. I believe the Armenian Dram has room for some 30% devaluation. Armenia is a poor country and the value of its currency does not match with the economic reality in the country. The only thing which supports the current rate is the remittances sent from Russia and elsewhere, this is not a sustainable economic model and the flow of money from Russia will eventually stop. Weaker dram will lead to robust domestic production and export, less import and stronger tourism. It is time for government to understand that employment is the number one problem in the country, not inflation.

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