Due to the strengthening of the dram as the dollar continues to depreciate, Armenian companies are having a hard time lately doing business. While exporters and manufacturers are losing money since they rely on the dollar to sell their products and have less and less dram to show for their profits by the day, importers are making countless amounts of money, according to a recent article published by ArmeniaLiberty.org. The owner of two huge tobacco companies, Hrant Vartanian, has just yesterday announced that he would move his production facilities to
Indeed the strengthening of the dram has become ridiculous. As I explained in a previous post, only six weeks ago one dollar would buy 445 dram. But a few nights ago I noticed that an exchange booth near the corner of Tumanian and Mashdots Streets was offering 407 dram for a buck. It doesn’t make sense that the rate has increased so much in such a short amount of time, which is why people have been criticizing the Central Bank of
The other day James McHugh, the representative of the International Monetary Fund in Armenia--which incidentally along with the World Bank backs the Central Bank--belittled allegations that the abnormal strengthening of the dram was artificial, stating that “You can tell someone that there is no aliens and that there is an absence of evidence of it, but people will still go on believing in it.” I don’t know who this guy thinks he is discounting the fact that people are losing money paranormally, but we’ll look past this absurd remark.
Many Armenian families rely on relatives working abroad, such as in the
The increasing value of the dram should be embraced. Technically it’s beneficial for