Today’s report by the Central Bank of Armenia (CBA) explains the consistent revaluation of the Armenian dram over the recent weeks. July 13 to 17, the CBA did not effect any exchange transactions thereby enabling AMD fluctuations.  Since the AMD was revaluating, the CBA’s passive policy contributed to the process. On July 16, the AMD reached the highest point – U.S. $1/363 AMD. During the previous weeks the CBA prevented AMD revaluation by purchasing U.S. dollars from the market. 

This week the AMD started showing gradual devaluation. The CBA must have refrained from exchange transactions this week as well, but the AMD has devalued.

Today’s average AMD/USD exchange rate on NASDAQ OMX Armenia was 364.41 AMD/U.S. $1. The AMD may have exhausted its revaluation potential and started devaluating – if the CBA remains neutral.  It should be noted that supporting the AMD revaluation is one of the CBA’s methods to curb prices.