Experts of the Eurasian Development Bank (EDB) believe that the strengthening of the Armenian dram rate in the near future will be facilitated by the preservation of remittance inflows at an elevated level and outpacing growth rates of exports compared to imports, as well as high tourist activity in the summer months.

“By the end of the year, the Armenian currency may weaken slightly from its current level based on the completion of the tourist season, increase of demand for imports of mineral products and decrease in rates in money market. Nevertheless, the overvaluation of the Armenian dram will persist by the end of the year,” the EDB Macroeconomic Review reads.

The review says that the appreciation of the Armenian dram may limit the growth of some sectors of the economy and shift resources to non-exportable sectors.