Op-Eds
The unstoppable dram: analysis of the world’s strongest currency
The beleaguered regime of Armenian Prime Minister Nikol Pashinyan has been marked with death and loss. The disasters endured by the Armenian nation during his rule have led to calamities only surpassed by the Armenian Genocide. But one positive outcome has been the unexpected and unprecedented rise in the Armenian dram. During Pashinyan’s time in power, the dram has become the world's strongest currency. Pashinyan, a college dropout with no experience in finance or economics, has shepherded th
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Follow the money
Great analysis which begs the dilemma of Pashinyan’s sponsorship. Good job indeed,
A thorough analysis of the DRAM and the Armenian economy ,in general
The article provides NO valid or possible reasons as to why the Armenian dram appreciated in recent years. One possible reason NOT mentioned in the article is that ever since the beginning of the war in Ukraine, a lot of illicit goods prohibited under Western sanctions pass to Russia through Armenia. The implication here is that the transaction for such illegal export to Russia are done in Armenian drams, raising the demand for the dram.
Ashot, I only write about facts, not rumor or innuendo. That being said, it’s almost certain that Armenia is exporting to Russia dual use goods, and possibly some sanctioned goods. Where you are making a big mistake is the impact this trade would have on the dram. It is negligible or nothing. Turkey, amongst other countries, is involved in this trade too and their currency is one of the weakest on the planet. Market moving investors would actually be discouraged by such trade as its illicit and temporary nature is a headwind to forecasting Armenia’s economic condition in the future.
You are right, I didn’t provide a reason for the rise of the dram, but that was the point of the article.