Head of Central Bank of Armenia explained why the strengthening of the dram does not offset the rise in global commodity prices

YEREVAN, September 15. /ARКА/. At a press conference on Tuesday, Martin Galstyan, Chairman of the Central Bank of Armenia, commented on the impact of the strengthening of the dram on the price dynamics of imported goods.

”Our exchange rate has strengthened, but the appreciation was quite moderate. Although we are experiencing a huge capital inflow, most of this capital inflow is primarily reflected in our reserves and does not have such a significant impact on the market,” Galstyan explained, answering a question about why the rule that when the national currency strengthens, the prices of imported goods from abroad should decline does not apply in Armenia.

According to him, the global price index for key food commodity groups—the FAO index—has increased by 6.1% since the beginning of the year. “I’m not even talking about energy. Today, the price of Brent crude oil is already $107 per barrel,” he added.

According to Armstat, inflation in Armenia in August 2026 compared to August 2025 was 4.4%. During the reporting period, prices for food products and non-alcoholic beverages increased by 6.4% (y-o-y), prices for non-food products increased by 2.4% (y-o-y), and tariffs for services increased by 2.8% (y-o-y).

According to the World Bank’s Armenia “Monthly Economic Update – September 2026,” in August, the Armenian dram appreciated by 0.4% against the US dollar and by 1.1% against the euro compared to the previous month, and was 4.6% stronger against the US dollar compared to August 2025, although it weakened by 8.6% against the Russian ruble year-on-year.

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