By Smbat Grigoryan

The US dollar (USD) has gained value in Armenia by virtually 1.8 percent since the beginning of the year.

To compare, the USD had “strengthened” in Armenia by around 22 percent in December 2013.

As we have reported many times, the economic problems in Russia strike a blow also on Armenia’s economy, and in terms of Armenia’s exports to that country and remittances to Armenia from Russia.

Both the Russian ruble and the USD remittances to Armenia have reduced 1.8 times within two years.

But if the USD gains too much value in Armenia, we rather can expect an increase in the prices of imported goods, instead of a growth in exports.

At present, the official USD exchange rate in Armenia is consistently increasing and approaching the AMD [i.e. Armenian dram] 500/$1 threshold.

Even though a huge distance separates Armenia from the multiple “strengthening” of this global currency, certain problems already are arising now in terms of—for example—foreign debt, or repaying the USD loans of commercial banks.