Thursday, August 27, 2009
Armenia New 100,000 Dram Banknote
YEREVAN -- An Armenian Central Bank official says the introduction of a 100,000 dram banknote does not increase the risk of inflation or delay an imminent devaluation of the national currency, RFE/RL’s Armenian Service reports.
Central Bank board member Vakhtang Abrahamian told RFE/RL that specialists studied the issue and concluded that the introduction of this large banknote -- worth about $265 -- does not threaten any major devaluation of the national currency.
The 100,000 dram bill came into circulation on August 24. Before that, a 50,000 dram bill was Armenia's largest banknote.
Economist Vahagn Khachatrian, of the opposition Armenian National Congress, regards the move as a sign of a possible depreciation of the Armenian currency.
He told RFE/RL that, "It is an accepted practice in all countries that banknotes of a higher nominal value are printed when devaluation takes place."