According to the latest analytical review by Finport.am, Armenia’s currency market displayed intriguing dynamics from September 16 to 23, 2024. The national currency, the dram, continued to strengthen against the US dollar and the Russian ruble, while weakening against the euro.
During the reporting period, the dram’s exchange rate against the US dollar strengthened from 386.8 to 386.5 drams per 1 dollar. A similar trend was observed against the Russian ruble, with the dram rising from 4.25 to 4.17 drams per 1 ruble. However, the dram slightly weakened against the euro, declining from 428.5 to 432 drams per 1 euro.
Significant shifts were noted in the structure of transactions on Armenia’s interbank currency market. The volume of dollar transactions dropped significantly—by 83.5%—while ruble transactions showed an impressive 2.5-fold increase. Remarkably, euro transactions resumed after a brief hiatus. A key point of interest is that the total weekly volume of ruble operations surpassed dollar transactions by 3.6 times and euro transactions by 5 times.
The intrabank currency market also saw notable changes. Dollar purchases grew by 36%, while sales fell by 9.8%. Euro operations showed positive trends, with purchases rising by 18.8% and sales increasing by 30.4%. Although ruble transactions remained in decline, the pace of the decrease slowed considerably.
The Central Bank of Armenia played a crucial role in stabilizing the currency market. From January to July 2024, the regulator conducted currency interventions totaling $366.5 million, helping maintain the stability of the national currency.
Finport.am analysts emphasize that current trends in Armenia’s currency market reflect a complex interplay of internal economic processes and external factors affecting the country's financial sector. Experts suggest that this dynamic may indicate a gradual reorientation of Armenia's economic ties and changes in the structure of its foreign trade operations.
Market participants and investors are advised to closely monitor the situation, as these trends could significantly impact Armenia's economic conditions and foreign trade relations in the near future.
