What is Armenian Dram (AMD)?

Armenian Dram (AMD)

The Armenian Dram (AMD) is the legal tender in Armenia and serves as a fundamental component of the nation's economy. Introduced in November 1993, the dram replaced the Soviet ruble and has since undergone various changes to stabilize and strengthen its value. The currency is recognized for its significant role in everyday transactions, including the purchasing of goods and services both locally and within the region.

The dram is subdivided into 100 luma, although luma coins are rarely used in practice, with the dram being the primary unit of currency in circulation. The Central Bank of Armenia is responsible for issuing and regulating the currency, ensuring its stability and integrity. The bank employs various monetary policies to manage inflation and influence interest rates, which are critical for economic growth.

The symbol for the Armenian Dram is often denoted as '֏', and its ISO code is AMD. Banknotes are issued in denominations of 1, 5, 10, 20, 50, 100, 200, 500, 1000, 5000, 10000, and 20000 drams, while coins are available in denominations of 1, 5, 10, 20, 50, and 100 drams. Over the years, the design of the banknotes has evolved, featuring significant cultural and historical figures, landmarks, and symbols that reflect Armenia's rich heritage.

The exchange rate of the dram can fluctuate based on various economic factors, including trade balances, foreign investment, and geopolitical events. This volatility can affect the purchasing power of the dram, particularly in relation to major currencies such as the US dollar and the euro. As such, both locals and businesses must remain aware of the current exchange rates when conducting transactions involving foreign currencies.

In recent years, the Armenian government has taken steps to enhance the stability of the dram by promoting economic reforms and encouraging foreign investments. These measures aim to foster a more resilient economy, which in turn strengthens the currency. As Armenia continues to integrate into the global economy, the importance of the dram as a stable medium of exchange remains vital for its citizens and businesses alike.