© / Grigory SysoevView of Yerevan from the architectural and monumental complex “Cascade”. Mount Ararat in the background
17 Feb – The Armenian dram paired with the Swiss franc has been able to hold against the dollar over the past ten years due to powerful cash flows, explained agency “Prime” Associate Professor of the Department of Finance and Credit, Institute of Economics and Finance, State University of Management Nikolai Kuznetsov.
He recalled that the dram was devalued against the dollar for a long time. Everything changed in 2022, when people and money began to move from Russia to the republic. According to the Ministry of Economy of Armenia, 108-110 thousand Russians came to the country. With their participation, more than seven thousand businesses were opened. All this added about half a billion US dollars to the economy every quarter. As a result, the Armenian dram rose by more than 22 percent against the dollar at the end of 2022.
Today, the dram remains supported by external cash flows, and even the Armenian-Azerbaijani conflict has not weakened it. In August 2023, the rating agency Standard & Poor’s upgraded Armenia’s credit rating from “B+” to “BB-“. The agency expects the country’s “relatively high GDP growth” to continue for several more years.