The Armenian Dram: 5,000 Years of Currency

Introduction

The Armenian dram (AMD) is the official currency of Armenia, introduced in 1993 after the country gained independence from the Soviet Union. The dram has a rich history dating back thousands of years, and it has played a vital role in the Armenian economy throughout the centuries.

History of the Armenian Dram

The first known Armenian currency was the silver shekel, which was minted in the 6th century BC. The shekel was followed by a series of other coins, including the gold daric and the silver drachm. The drachm was the most widely used coin in Armenia, and it remained in circulation until the 19th century.

In the 19th century, Armenia was part of the Russian Empire, and the Russian ruble was the official currency. After Armenia gained independence in 1991, the government introduced the Armenian dram as the new national currency.

The Armenian Dram Today

The Armenian dram is divided into 100 luma. The dram is issued by the Central Bank of Armenia, and it is available in coins and banknotes. The coins are made of aluminum, steel, and brass, and they come in denominations of 10, 20, 50, 100, 200, and 500 drams. The banknotes are made of paper, and they come in denominations of 1,000, 5,000, 10,000, 20,000, 50,000, and 100,000 drams.

The Armenian dram is a relatively stable currency, and it has been pegged to the US dollar since 1993. The dram has a fixed exchange rate of 47.58 AMD to 1 USD.

The Armenian Dram in the Economy

The Armenian dram is the primary means of exchange in Armenia. It is used for all domestic transactions, and it is also accepted by some businesses in neighboring countries. The dram is a relatively strong currency, and it has helped to stabilize the Armenian economy.

The dram is also used as a reserve currency by the Central Bank of Armenia. The bank holds a significant amount of foreign currency reserves, which helps to support the value of the dram.

Benefits of Using the Armenian Dram

There are several benefits to using the Armenian dram. First, it is a stable currency, which means that it is not subject to large fluctuations in value. This makes it a good choice for businesses and individuals who need to make long-term investments.

Second, the dram is a widely accepted currency in Armenia. It is used by all businesses and individuals, and it is also accepted by some businesses in neighboring countries. This makes it a convenient currency to use for domestic and international transactions.

Third, the dram is a relatively strong currency. This means that it can be exchanged for a high amount of foreign currency. This makes it a good choice for travelers who need to exchange their money for local currency.

Tips for Using the Armenian Dram

Here are a few tips for using the Armenian dram:

• Make sure to exchange your money at a reputable exchange bureau.
• Keep your money in a safe place.
• Be aware of the exchange rate before you exchange your money.
• Use the dram for all domestic transactions.
• Consider using the dram as a reserve currency.

Conclusion

The Armenian dram is a stable, widely accepted, and relatively strong currency. It is the primary means of exchange in Armenia, and it is also used as a reserve currency by the Central Bank of Armenia. There are several benefits to using the dram, and it is a good choice for businesses and individuals who need to make long-term investments.