The Depreciation of the US Dollar Will Negatively Impact the Armenian Market

The exchange rate of the US dollar against the Armenian dram has reached its lowest level in the last decade, continuing its depreciation trend. This could have an impact on the Armenian market. The depreciation of the US dollar adversely affects Armenia's exports, as Armenian products become more expensive in the international market, consequently losing competitiveness.

At the same time, imports become cheaper, which could stimulate the consumption of imported goods. When imports increase while exports decline, a trade deficit forms, which can create challenges for economic stability.