In Jan-Aug 2016 Armenian dram appreciated against US dollar by 1.5% amid 3.8% decline in consumer prices

ArmInfo. In August 2016,  Armenian dram (AMD) appreciated against US dollar (USD) by 0.2%  (versus 0.5% depreciation in August 2015 and 2014). As compared with  August 2015, AMD revaluated against USD by 0.9% (versus 17.2%  year-over devaluation in 2015 and 0.5% devaluation in August 2014).  The National Statistical Service of Armenia has told ArmInfo that in  Jan-Aug 2016, AMD revaluated against USD by 1.5% (versus 3.5%  devaluation in Jan-Aug 2015 and 1% devaluation in Jan-Aug 2014). The  average exchange rate in August 2016 was 475.4 AMD/$1, versus 479.8  AMD/$1 in August 2015, 409.5 AMD/$1 in August 2014. 

The source says that the consumer market of Armenia saw 0.5%  deflation in August 2016; 3.8% deflation versus Dec 2015; 1.9%  deflation versus Aug 2015. A year before, in August 2015, 0.1%  inflation was fixed amid 0.5% devaluation of AMD against USD. In  Jan-Aug 2015, 2.1% deflation was fixed amid 3.5% devaluation. As  compared to August 2014, 3.6% inflation was registered amid 17.2%  devaluation.  

To recall, in 2015, on the retail foreign exchange market of Armenia  AMD weakened against USD from 477 to 482 AMD/$1 on average and  strengthened against EUR from 571.5 to 529 AMD/1EUR and against  Russian ruble from 8.2 to 6.9 AMD/1 RUR. Between December 14 and 28,  the Central Bank made almost daily interventions. AMD depreciated  amid decline of foreign trade turnover (by 20.6%), while import  dropped more significantly (by 26.5%) than export (by 3.9%) as well  as the decline in transfer inflow to Armenia more than by 30%, and  this happened in conditions of low buying capacity of the population  and low economic activity in the country.  By 9 Sept 2016, on the  retail forex market of Armenia AMD appreciated against USD to 475  AMD/$1, at the same time depreciating against EUR and RUR to 536  AMD/1EUR and 7.4 AMD/1EUR, respectively. 

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%.