Our history
Armenia’s National Currency: The Story of the Dram
The national currency of the Republic of Armenia, the dram, is one of the symbols of independent statehood. The dram was put into circulation on November 22, 1993, which is why this day is celebrated annually as Armenian Dram Day. During the existence of the Armenian dram, several series of circulating banknotes and coins were issued, as well as other types of currency that are of collectors’ interest: circulating commemorative coins, collector banknotes, and collector and investment coins. Read More:
Historical Money Circulation
The national currency of Armenia, the Dram, was introduced on November 22, 1993, replacing the Soviet ruble at an exchange rate of 200 rubles per dram. Initially, banknotes of various denominations were issued, and Soviet ruble banknotes co-circulated until March 17, 1994. Over the years, the currency system evolved with the introduction of aluminum coins and higher-value banknotes. The second series of banknotes, introduced in 1998, incorporated improved security features and design. Special commemorative banknotes, such as the 50,000-dram note marking the 1700th anniversary of Armenia's adoption of Christianity, were also issued. Between 2003 and 2005, a second series of coins was introduced, while older banknotes from the first series were gradually withdrawn from circulation. In 2009, the highest-denomination banknote of 100,000 dram was issued. The third series of Armenian banknotes was introduced in 2018, featuring modern security technology and a composite substrate for enhanced durability. A new 2,000-dram denomination was also added, and the series includes banknotes ranging from 1,000 to 50,000 dram.
Development of the Financial System
The establishment of the Central Bank of Armenia and the two-tier banking system was essential in transitioning from a planned economy to a market-based system. Since its formation, the Central Bank has introduced key monetary policies to ensure price stability and financial security. The adoption of inflation targeting in 2006, along with continuous reforms, has strengthened Armenia’s financial system. Today, the Central Bank remains a cornerstone of economic stability, guiding Armenia’s financial development and growth.
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History of Monetary Policy
The monetary policy of the Central Bank of the Republic of Armenia has a 30-year history. The Central Bank of Armenia began to implement independent monetary policy since Independence. The first “Law on the Central Bank of Armenia”, adopted in that year.
In 1994, the Central Bank of Armenia adopted monetary aggregate targeting as its monetary policy strategy. That same year, the first monetary policy program of the CBA was developed and approved. In 1996, the second law “On the Central Bank of the Republic of Armenia” was adopted, in which the main goal of the Central Bank was set to ensure price stability and operational independence was given to the Central Bank. Since 1996, the CBA adopted and to this day continues to implement free-floating exchange rate policy.
Beginning on January 1, 2006, the CBA shifted to a full-fledged inflation targeting regime, under which the main goal of ensuring price stability was preserved. In 2011 and 2012, the CBA carried out significant reforms of the monetary policy development and decision-making system, expanding the policy horizon from 1 year to 3 years, and presenting inflation forecasts based on internal monetary policy, instead of conditional forecasts presented previously under the hypothesis of unchanged interest rates.
Beginning on April 9, 2018, the CBA’s primary objective was expanded to include both price stability and financial stability.