Appreciation and Depreciation of The Dram
In 2010, the value of the Armenian Dram (AMD) was artificially kept high during the height of the global economic crisis. Had the AMD been allowed to depreciate to its market level, exports would have become more competitive and the purchasing power of the majority of the population who are dependent on remittances from abroad would have increased. Instead, the value of the AMD was kept high, out of a fear of inflation and concern about alienating the powerful government-connected importers of oil, sugar, flour, cigarettes and beverages.
The AMD/USD exchange rate depreciated by 6.1 percent in the first three quarters of 2010 compared to the same period in 2009, before it began to show the expected end-of-the-year appreciation. In comparison between the January to October periods of 2010 and 2009, depreciation stands at 4.7 percent.
Read more about this topic: Economy Of Armenia
Famous quotes containing the words appreciation, depreciation and/or dram:
“The effect of having other interests beyond those domestic works well. The more one does and sees and feels, the more one is able to do, and the more genuine may be one’s appreciation of fundamental things like home, and love, and understanding companionship.”
—Amelia Earhart (1897–1937)
“The foundation of humility is truth. The humble man sees himself as he is. If his depreciation of himself were untrue,... it would not be praiseworthy, and would be a form of hypocrisy, which is one of the evils of Pride. The man who is falsely humble, we know from our own experience, is one who is falsely proud.”
—Henry Fairlie (1924–1990)
“Let me have
A dram of poison, such soon-speeding gear
As will disperse itself through all the veins
That the life-weary taker may fall dead,
And that the trunk may be discharged of breath
As violently as hasty powder fired
Doth hurry from the fatal cannon’s womb.”
—William Shakespeare (1564–1616)