YEREVAN. – The American national currency’s growing exchange rate against the Armenian dram (AMD) could be linked to the ongoing developments in Cyprus, Armenian former MP, economist Vardan Bostanjyan said during a press conference on Thursday.    

In his words, the causes for the changes in the dollar’s exchange rate in Armenia are not solely domestic. 

“There is always a demand for foreign currency because it is irreplaceable for foreign operations,” the economist stated, and added that the dollar’s growing demand in Armenia is also due to the outflow of capital from the country.    

“Capital aspires for a place where the conditions are more favorable for it. If capital is taken out of here, it means the conditions here are not beneficial for it,” Vardan Bostanjyan maintained. 

To note, in recent times the average exchange rate of the US national currency jumped from AMD 410/$1 all the way to AMD 420/$1 in Armenia.