In Feb 2016 Armenian dram depreciated against USD by 1.6% amid 3.2% year over year devaluation

ArmInfo. In Feb 2016, Armenian dram (AMD) depreciated against USD by 1.6% amid 1.4% decline in the consumer prices. As compared to Feb 2015, AMD depreciated by 3.2% against USD amid 1.7% drop in consumer prices. In Jan-Feb 2016, AMD devaluated by 2.2% against USD amid 0.8% inflation on the consumer market. The National Statistical Service of Armenia has told ArmInfo that in Feb 2016 the average AMD/USD exchange rate was 493.6 AMD/$1 versus 478.4 AMD/$1 in Feb 2015.

For comparison, it should be noted that in Feb 2015 the consumer prices dropped by 0.2% amid 0.6% AMD devaluation against USD. As compared to Feb 2014, consumer prices grew by 5.4% amid 16.2% AMD devaluation against USD. Jan-Feb 2015 saw 2.3% inflation amid 3.2% AMD depreciation against USD.

According to the National Statistical Service, in 2015 AMD depreciated by 4.2% against USD amid 0.1% decline in consumer prices and in December 2015 alone AMD depreciated by 0.6% against USD (to 482.9 AMD/$1) amid 1.7% inflation. In 2014 AMD depreciated by 14.1% amid 4.6% inflation. In 2013, AMD revaluated by 0.1% amid 5.6% inflation. In 2012, inflation made up 3.2% amid 5.8% depreciation of AMD.  In 2011, inflation made up 4.7% amid 6.2% devaluation of AMD versus 9.4% inflation in 2014 amid 5.2% revaluation of AMD against USD.

To recall, in Oct-Dec 2014 the retail forex market of Armenia saw 45% depreciation of AMD against USD (with the most tangible depreciation fixed on Dec 17 - 570 AMD/$1). In 2014, the total devaluation of AMD made up 40%. The previous sharp depreciation of AMD took place in 2009 (on 3 March 2009 - by 22%). In 2009 this happened because the CBA decided to return to the floating rate policy, whereas in 2014 the reason was the Russian ruble crash and the sharp decline in the private transfers, reduction in exports, tangible fall in imports and considerable slowdown in economic development.

To note, by 10 March 2016, on the retail forex market of Armenia, AMD depreciated against USD to an average of 491 AMD/$1 versus 482 AMD/$1 as of 30 Dec 2015 and 481 AMD/$1 as of 10 March 2015.