YEREVAN, 24 December. /ARKA/. The currency exchange rates in Armenia are shaped by supply and demand, Chairman of the Central Bank Martin Galstyan said in an interview with Public Television of Armenia, in response to a question about the revaluation of the Armenian dram after the arrival of thousands of Russian nationals after the start of the Russian-Ukrainian war.

‘For many years, the Central Bank of Armenia has repeatedly stated that the country has a floating exchange rate of the national currency. That is, for the Central Bank, the exchange rate is not a target indicator like, for example, inflation,’ Galstyan said.

According to him, such a flexible policy allows small countries like Armenia, which have an open economy, to use the exchange rate as a ‘shock absorber’ rather than an amplification tool.  

‘Thanks to this, we managed to solve the problem of inflation, which arose due to the ratio of the exchange rate to the interest rate, and which constantly surfaced in previous years,’ the Central Bank governor said.  

As for exporters, Galstyan said that some of them may well face certain difficulties, which are mostly related to greater sensitivity to currency fluctuations. Nevertheless, there are also many who benefit from it.  

According to the National Statistical Committee of Armenia, in November 2024, the average estimated exchange rate of Armenian dram to the US dollar was 389 drams, which was 3.4 per cent lower than in November 2023.