YEREVAN, 21 June. /ARKA/. Armenia’s national currency, the dram, has strengthened since the beginning of the year, the Eurasian Development Bank (EDB) said in a forecast.
“Compared to the end of 2023, the dram has strengthened by 4.3% against the US dollar, 6.2% against the euro and 4.4% against the Russian ruble as of the end of May. This was primarily due to the high growth rates of precious metals exports,” the forecast says.
It is noted that at the same time the strengthening of the national currency restrains external demand for exports of most goods and services. Strengthening of the exchange rate of the dram in the period from February to May this year limited, among other things, the growth of consumer prices, the EDB said.
“The average annual exchange rate of the dram to the US dollar is forecast at 396 in 2024. Remittance inflows, strong exports and stability of tourism activity will support the national currency in the current year,” the forecast said.
It is noted that in the medium term several factors will contribute to some depreciation of the Armenian dram. Among them are adjustments in the growth rates of commodity exports, devaluation expectations due to the geopolitical situation, lower rates on the money market and slowdown in the economy. -0-
