Armenian dram depreciates against US dollar 59% in 2008-2015

ArmInfo. The national dram depreciated against the US dollar 0.5% in Aug 2015 (versus similar depreciation in Aug 2014), and 17.2% year over year  (versus 0.5% year over year depreciation in Aug 2014).

The National Service of Statistics told ArmInfo in Jan-Aug 2015, the national dram devaluated against US dollar by 3.5% (versus 1% depreciation in Jan-Aug 2014). The exchange rate averaged 479.8 AMD/1 USD versus 409.5 AMD/1 USD in Aug 2014. As compared to Aug 2008, the national currency depreciated by 59%, as compared to Aug 2009 - 28.8%.  

According to the source, on the consumer market of Armenia, in Aug 2015 inflation totaled 0.1%, as compared to Dec 2013, there was 2.1% inflation, while comparing to Aug 2014 there was 3.6% inflation.  In Aug 2014 inflation totaled 0.7% amid 0.5% depreciation of the national dram against US dollar. As compared to Dec 2013, deflation totaled 1.2%, amid 1% depreciation of the national dram. As compared to Aug 2013, inflation totaled 0.8% amid insignificant devaluation of the dram. 

For comparison, inflation in Jan-Aug 2013 totaled 3.5% amid 0,4% depreciation of the AMD against USD.  Inflation in Aug 2013 totaled 0.3%, while comparing to Aug 2012 - 9.3%. In Jan-Aug 2012, deflation totaled 2.3% amid 7.2% depreciation of AMD against USD/ In Aug 2012 alone, consumer prices fell 0.4% amid 0.4% revaluation of AMD against USD versus  0.2% deflation in Jan-Aug 2011 and 1.8% devaluation of AMD against USD (in Aug 2011 alone, deflation totaled 0.6%, while AMD/USD exchange rate was left unchanged).

According to the National Statistics Service, depreciation of the AMD against USD for 2014 totaled 14.1%, in Dec alone - 10%, amid 4.6% inflation for 2014 (in Dec alone - 3%). In 2013, the dram depreciated against dollar 0.1%, in Dec alone - 0.1% amid 5.6% inflation (1.1% in Dec).  In 2012 the AMD depreciated against USD 5.9%, in Dec - 0.3% amid 3.2% inflation in 2012 (2.1% in Dec).

To recall, during the last months of 2014 the forex market of Armenia registered a sharp rise of the AMD/USD exchange rate - over 570 AMD/1USD. From October through December 17, 2014, AMD depreciated by almost 45% in the retail forex market of Armenia (in general, in 2014 the AMD depreciated 40% - min in June and maximum in Dec).  The previous sharp devaluation of the national dram was registered in 2009 (March 3 - 22%).  The reason was CBs's return to the floating rate policy. In 2014, the national currency slumped as Russian ruble rate fell, private transfers decreased, export and import shrank affecting the economic development.