Today, August 30, the Armenian dram has knocked the U.S. dollar down at the NASDAQ OMX Armenia stock exchange. A total of U.S. $14.9m were sold at an average exchange rate of 361.79 AMD/U.S. $1. The closing exchange rate was 362 AMD/U.S. $1. The August 30 lowest exchange rate was 361.5 AMD/U.S. $1 – the lowest rate over the past 12 months.

This year, U.S. $488m transactions with U.S. dollars have been effected at the Yerevan tock exchange, the average exchange rate being 380 AMD/U.S. $1, and the highest 405. AMD/U.S. $1 (on April 2).

But for the interference of the Central Bank of Armenia (CBA), more rapid USD depreciation would have been registered. Last week, the CBA did not effect any transactions. But for the CBA, the dram would have knocked the USD out.

The reasons for the USD depreciation are not quite clear. Most experts say the USD will stop “behaving in a cat-and-mouse way” with the Armenian dram this September and start revaluating similarly to its revaluation against Euro in the international market.

It may be a short-term effect of the growing trade turnover on the threshold of academic year. USD savings normally satisfy the increased demand for money as the retain trade turnover reaches its peak. If this theory is right, the U.S. dollar will start revaluating from September 1.