MosJan Posted May 26, 2006 Report Share Posted May 26, 2006 Armenian Currency Again Rises Against U.S. Dollar By Atom Markarian Armenia’s national currency, the dram, has gained nearly five percent in additional value against the U.S. dollar over the past month, resuming its controversial appreciation blamed by the Armenian authorities on increased remittances from abroad and the greenback’s worldwide weakening. The dollar was trading at an average of 430 drams in Yerevan’s currency exchange office on Thursday, down from last month’s level of approximately 450 drams. The dram has also strengthened, albeit slightly, against the euro since the middle of April. The dram is now worth about 30 percent more, in dollar terms, than it was right before the start of its dramatic appreciation in late 2003. The Armenian Central Bank has said all along that that is the result of a steady in growth in multimillion-dollar remittances sent home each year by hundreds of thousands of Armenians working abroad. According to the bank, the cash transfers totaled at least $1 billion last year and rose by 26 percent during the first quarter of this year. Bank officials also point to the dollar’s recent fall against the euro and other hard currencies which has been widely attributed to investor fears about possible U.S. military action against Iran and the resulting rise in oil prices. However, the official explanations are dismissed by politicians and economists critical of Armenia’s government. They have long claimed that the surge in the dram’s value has been engineered by the authorities keen to benefit a handful of government-connected Armenian importers of fuel and other basic commodities. Such claims are trusted by many of those Armenians who are dependent on the dollar remittances. “I have lost a lot from these fluctuations,” said one Yerevan resident as he converted dollars into drams. “I now need $100 to buy something which I could buy for $70 three years ago. Importers are making loads of money at the people’s expense.” “I think this is the result of games played by local mafiosi,” said another man. “This is not affecting me because I get my salary in drams. But many people get cash from abroad and they have suffered a lot.” Quote Link to comment Share on other sites More sharing options...
tigranisbasileus Posted May 26, 2006 Report Share Posted May 26, 2006 usa economy has big problems reflected in dollar Quote Link to comment Share on other sites More sharing options...
Anonymouse Posted June 11, 2006 Report Share Posted June 11, 2006 At this point, alot of currencies are doing better than the dollar. The U.S. is an empire of debt, and as such, it's time is numbered. Makes me wonder why my folks moved here to 'give us a better life'. Ah, but who could have predicted the future? Quote Link to comment Share on other sites More sharing options...
Harut Posted June 11, 2006 Report Share Posted June 11, 2006 At this point, alot of currencies are doing better than the dollar. The U.S. is an empire of debt, and as such, it's time is numbered. Makes me wonder why my folks moved here to 'give us a better life'. Ah, but who could have predicted the future? i think you will have made fortune when u.s falls... then you can move to another country to give your children a better life... Quote Link to comment Share on other sites More sharing options...
Anonymouse Posted June 27, 2006 Report Share Posted June 27, 2006 (edited) i think you will have made fortune when u.s falls... then you can move to another country to give your children a better life... That all depends on how we invest and into what markets. Foreign mutual funds and currencies are a better bet at this point. Since 1913, when the Federal Reserve was created, the U.S. dollar has lost about 95% of its value and there is no end in sight. The cheap credit and easy money policies of the Federal Reserve have created an illusory boom, and when the bust comes, things will not be pretty and we are already beginning to see signs of cracks within the system. Edited June 27, 2006 by Anonymouse Quote Link to comment Share on other sites More sharing options...
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