Armenian dram keeps on losing its value

YEREVAN, December 11. /ARKA/. The Armenian dram continues to devalue and the economic situation is difficult, Edgar Karapetyan, director for strategy and innovation at Galaxy Group of Companies, wrote on his Facebook page. He said the US dollar is already trading at 520-525 drams.

“Many people ask why the Central Bank does not take action to restrain the devaluation of the dram. To do this, it is necessary to present the whole picture. In particular, over the past 3 months, Armenia’s international reserves have decreased by $381 million to about $2.3 billion as of late November (about 20% of GDP and 45% of imports). There is no doubt that the reserves were used in the domestic market to restrain the dram’s devaluation against the US dollar,” Karapetyan said.

In addition, according to him, in the next three months, the Central Bank will have to pay off loan obligations in the amount of $1.1 billion, as a result of which state reserves will decrease, at best, to $1.1 billion (about 10% of GDP and 22% of import).

“This indicator is already risky enough,” Karapetyan said. He also noted that the ratio of public debt to GDP at the current rate is already 67.4%, which, according to international organizations, is also a risky indicator.

According to him, only 47% of government treasury bonds were placed the day before, with an average yield of 7.6% (2% higher than in the summer).

“Thus, the country is experiencing a significant economic recession, a reduction in state budget revenues, a significant increase in government spending, and inadequate government administration. At the same time, there is no necessary financial inflows such as investments, exports and remittances and there is no trust in the government,” Karapetyan said. -0–

spot_img

POPULAR

In February, commercial bank deposits in Armenia decreased by 0.2%, while lending expanded by 0.9% — World Bank

In February 2026, commercial bank deposits in Armenia decreased by 0.2% (MoM), while lending grew by 0.9% (MoM), according to the World Bank's "Armenia Monthly Economic Update – April 2026."

Armenian banks’ net profit in Q1 2026 increased by 2.3% to AMD 103.5 billion

The total net profit (after tax) of Armenian banks in Q1 2026 amounted to AMD 103.48 billion, compared to AMD 101.18 billion in Q1 2025, an increase of 2.27%. Moreover, compared to the previous quarter, Q4 2025, the increase was 5.84%.

VTB (Armenia) Expands Payment Options for Russian Tourists

Ahead of the tourist season, VTB (Armenia) is strengthening its acquiring infrastructure, expanding its network and introducing digital payment solutions.

IMF Improves Armenia’s GDP Growth Forecast to 5.3% in 2026

The International Monetary Fund (IMF) forecasts real GDP growth for Armenia at 5.3% in 2026 and 5.5% in 2027, according to the April World Economic Outlook, published on April 14.

Unibank issues USD bonds with a 5.6% yield

Unibank announces a new issue of USD bonds in the amount of 5 million USD.

LATEST NEWS

spot_imgspot_imgspot_img