The recent appreciation of the US dollar against the Armenian dram has triggered a noticeable shift in Armenia’s economic landscape. Importers are facing higher costs, which are gradually passed on to consumers through increased prices for everyday goods. Local businesses reliant on foreign currency loans are also experiencing heightened financial pressure, leading many to reconsider expansion plans or delay investments. Conversely, Armenian exporters may benefit from stronger competitiveness abroad as their products become relatively cheaper in dollar terms.

Key effects on the local economy and consumers include:

  • Rising inflation: Consumer prices for imported electronics, fuel, and automobiles have seen an uptick of 5-8% in recent weeks.
  • Increased cost of living: Households with limited income report tighter budgets as the price of basic goods escalates.
  • Tourism and remittances: The stronger dollar makes travel to…