Armenians who live in the United States and Americans who reside in Armenia often end up sending money to their respective home countries. Consider this – in 2016, more than U.S. $190 million was sent from the United States to Armenia as remittances. Bilateral trade of goods between both countries exceeded U.S. $122 million in 2017.
- User Rating
- Transfer Type
- Regular Payments
- Mobile App
- Min Transfer Amount
- Two Transfers Fee Free
- 1 - 3 Days
- $250 / £100 / €250
The U.S. dollar, in its existing form, came into being in 1792. Now, it also serves as legal tender in two British Overseas Territories, Turks and Caicos Islands, the British Virgin Islands, the Caribbean, and Zimbabwe. Some of the places where it is used unofficially include Costa Rica, Panama, Liberia, Haiti, Belize, Myanmar, Cambodia, and Nepal.
In April 2016, the U.S. dollar’s share of the international forex market turnover was over 87%. While the U.S. dollar is the world’s most heavily traded currency, it is also the world’s most favored reserve currency. According to estimates, more than U.S. $5 trillion passes through the forex market each day.
|Nicknames||Buck, moolah, paper, dough, dead presidents, |
bones, greenback, green
|Bank notes||$1, $2, $5, $10, $20, $50, $100|
|Coins||1c, 5c, 10c, 25c, 50c, $1|
The word “dram” translates to money in the Armenian language. Other than Armenia, the use of the dram is also prevalent in the unrecognized Republic of Artsakh (Nagorno-Karabakh). The initial use of dram as a currency, in the form of silver coins, dates back to the Armenian Kingdom of Cilicia that existed between the 12th and 14th centuries.
After the Soviet Union’s collapse in December 1991, there was an attempt to maintain the Russian ruble as a common currency among the Commonwealth of Independent States (CIS), which included Armenia as a founder member. However, the rublezone collapsed soon after Russia’s monetary reforms in 1993. Participating CIS member states then had to introduce their own currencies. Armenia adopted the modern day dram as its official currency in November 1993.
|Sub unit||Luma ()|
|Bank notes||50, 100, 500, 1,000, 5,000, 10,000, |
20,000, 50,000, 100,000 dram
|Coins||10, 20, 50, 100, 200, 500 dram|
U.S. Dollar / Armenian Dram Historical Rates
Upon its introduction on 22 November 1993, one Armenian dram valued at 200 rubles. This effectively resulted in the dram trading at AMD 404 against the U.S. dollar. It gradually lost value against the U.S. dollar in the following years. In mid 2002, it traded at an all time high of over AMD 580 against the U.S. dollar.
From mid 2002 to early 2004, the USD/AMD currency pair remained largely stable, with the dram trading at around AMD 568 against the dollar. The dram then started to gain value almost steadily, except for a period of slow down from mid 2005 to early 2006. By late 2007, the dram had risen in value to trade at a little over AMD 300 against the U.S. dollar.
The trend continued until early 2009, when the dram experienced a sudden dip in value. By April 2009, the dram was trading at over AMD 370 against the U.S. dollar. In March 2010, it traded at AMD 400 against the U.S. dollar.
The Armenian government tried to keep the value of the dram high during the global financial crisis intentionally. This was done with the aim of maintaining the purchasing power its local population that is largely dependent on international remittances as well as keeping its exports from becoming more competitive.
By July 2012, the dram was trading at almost AMD 440 against the U.S. dollar. Its value went up and down periodically from then until early 2013, after which there was a period of relative stability until late 2014.
In January 2015, the value of the dram jumped to around AMD 476 against the U.S. dollar. Since then, its value has hovered largely in between AMD 470 and AMD 490 against the U.S. dollar.
USD/AMD in the last five years
|U.S. $1 =|
|1 July, 2013||AMD 409.50|
|1 July, 2014||AMD 406.40|
|1 July, 2015||AMD 477.95|
|1 July, 2016||AMD 475.70|
|1 July, 2017||AMD 478.35|
USD/AMD in the last five months
|U.S. $1 =|
|1 April, 2018||AMD 484.75|
|1 May, 2018||AMD 484.75|
|1 June, 2018||AMD 482.22|
|1 July, 2018||AMD 481.25|
|1 August, 2018||AMD 482.00|
What Affects USD/ARS Rates?
While the Armenian dram follows a free floating exchange rate system, the Central Bank of Armenia steps in to control its rate when it faces short-term or extreme volatility. For instance, the Central Bank intervened in the forex market from mid 2008 to early 2009 to try and maintain stability in the exchange rate of the dram.
Not unlike other former Soviet states, Armenia continues working on liberalizing its economy. Since 1993, the country has received around U.S. $1 billion in international aid. While Armenia has managed to become among the most stable economies in the region, its trade imbalances tend to have an adverse effect on the value of its currency. Fortunately, remittances coming into the country have managed to offset the trade imbalance to some degree.
Political and other economic factors such as gross domestic product (GDP) and interest rate changes may also have an effect on how the USD/AMD currency pair performs.
The USD/AMD exchange rate requires your particular attention if you plan to send money from Armenia to the United States or in the opposite direction. However, bear in mind that the fee you end up paying will also add to your transfer’s cost.