Armenian dram depreciates against US dollar 0.6% in Jan 2016 amid 2.2% inflation

ArmInfo. The national dram depreciated against the US dollar 0.6% in Jan 2016 amid 2.2% inflation. As compared to Jan 2015 AMD depreciated against USD 2.2% amid 0.4% inflation.  The National Service of Statistics told ArmInfo the exchange rate averaged 486 AMD/$1 in Jan 2016 versus 475.7 AMD/$1 in Jan 2015 and 407.4 AMD/$1 in Jan 2014, 406.7 AMD/$1 in Jan 2013.

In Jan 2015 the AMD depreciated against USD 2.6% amid 2.5% inflation compared to Jan 2014 when 4.3% inflation was fixed amid AMD depreciation by 16.8%. To note for comparison that in Jan 2014 2.8% inflation was registered amid 0.5% AMD depreciation, while y-o-y 5.5% inflation was fixed amid AMD devaluation against USD by 0.2%. In Jan 2013 2.9% inflation was fixed amid AMD depreciation against USD by 0.3%, in Jan 2012 AMD depreciation totaled 1.1% amid 3.6% inflation, versus 2.8% inflation and AMD depreciation by 1.2% in 2011.

According to the National Statistical Service of Armenia, AMD depreciation against USD totaled 4.2% in 2015 amid drop of consumer prices only by 0.1%. In December alone AMD depreciated against USD by 0.6% (to 482.9 AMD/$1) amid 1.7% inflation. In 2014, AMD devaluation by 14.1% (in December alone - by 10% amid 3% inflation) was accompanied by 4.6% inflation. In 2013, AMD revaluated 0.1% to USD amid 5.6% inflation. In 2012, amid 3.2% inflation devaluation of AMD against USD was registered at 5.8%. In 2011 inflation totaled 4.7% and AMD depreciated by 6.2% versus 9.4% inflation in 2010 and AMD revaluation by 5.2%.

To recall, in Oct-Dec 2014, the forex market of Armenia registered a sharp rise of the AMD/USD exchange rate by 45% reaching 570 AMD/$1 on Dec 17.  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 CBA'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.

To note, on the retail forex market of Armenia the exchange rate averaged 495 AMD/1 USD as of Feb 8 2016 versus 482 AMD/$1 as of Dec 30 2015 and 479 AMD/$1 as of Feb 8 2015.