Appreciation and Depreciation of The Dram
In 2010, the value of the Armenian Dram (AMD) was artificially kept high during the height of the global economic crisis. Had the AMD been allowed to depreciate to its market level, exports would have become more competitive and the purchasing power of the majority of the population who are dependent on remittances from abroad would have increased. Instead, the value of the AMD was kept high, out of a fear of inflation and concern about alienating the powerful government-connected importers of oil, sugar, flour, cigarettes and beverages.
The AMD/USD exchange rate depreciated by 6.1 percent in the first three quarters of 2010 compared to the same period in 2009, before it began to show the expected end-of-the-year appreciation. In comparison between the January to October periods of 2010 and 2009, depreciation stands at 4.7 percent.
Read more about this topic: Economy Of Armenia
Famous quotes containing the words appreciation and, appreciation, depreciation and/or dram:
“The chief misery of the decline of the faculties, and a main cause of the irritability that often goes with it, is evidently the isolation, the lack of customary appreciation and influence, which only the rarest tact and thoughtfulness on the part of others can alleviate.”
—Charles Horton Cooley (1864–1929)
“It is remarkable that, notwithstanding the universal favor with which the New Testament is outwardly received, and even the bigotry with which it is defended, there is no hospitality shown to, there is no appreciation of, the order of truth with which it deals. I know of no book that has so few readers. There is none so truly strange, and heretical, and unpopular. To Christians, no less than Greeks and Jews, it is foolishness and a stumbling-block.”
—Henry David Thoreau (1817–1862)
“The foundation of humility is truth. The humble man sees himself as he is. If his depreciation of himself were untrue,... it would not be praiseworthy, and would be a form of hypocrisy, which is one of the evils of Pride. The man who is falsely humble, we know from our own experience, is one who is falsely proud.”
—Henry Fairlie (1924–1990)
“Let me have
A dram of poison, such soon-speeding gear
As will disperse itself through all the veins
That the life-weary taker may fall dead,
And that the trunk may be discharged of breath
As violently as hasty powder fired
Doth hurry from the fatal cannon’s womb.”
—William Shakespeare (1564–1616)