ALL RIGHTS RESERVED © 1996 by Richard L. Ney This tour guide is prepared for personal information-use only. Absolutely no part of this tour guide, its complete form, or the information contained within it may be reprinted, copied or otherwise duplicated for the purposes of resale or commercial gain. Any duplication or copying of this guide, any part thereof, and the information contained must receive the express permission of the author.

Currency: Armenian Dram (AMD)
Exchange Rate: US$ 1 = 495-505 AMD *
1 AMD = .0025 - .0023 US$*

Coffee Test: One cup of coffee costs 100 AMD
Bread Test: One loaf of bread costs 120-160 AMD
Chicken Test: One lb. of chicken costs 453 AMD
Fruit Test: One lb. of apples costs 36 AMD
Vegetable Test: One lb. of potatoes costs 54 AMD
Petrol Test: One gallon of petrol costs: 567 AMD

*As of November 1997 the AMD had stabilized between 495-505 drams per US$

Currency:

The Armenian Currency is called the Dram (pronounced ‘drahm’). It is divided into 100 luma (pronounced ‘LOOM-ah’). There are dram notes in denominations of 10, 25, 50, 100, 200, 500, 1000 and 5000 AMD; AMD Coins in denominations of 1, 3, 5 and 10; and Lumas in denominations of 10, 20 and 50 lumas.

It is unlikely you will ever see a luma. They are a vestige of a time when the dram was first introduced, and valued at 14 drams per dollar. That was four years ago, and virtually all items are now priced in dram denominations. Dram coins might be given as change at some stores, but almost exclusively you will be using paper currency. The exchange rate has settled into a tightly monitored range by the Central Bank, and the 1000% plus annual inflation of a few years ago is no longer a factor in the daily economy. Still, the government has been gradually bringing the price of state-controlled goods and services (i.e. bread, electricity) to international levels, and this does hurt the purchasing power of most Armenians.

Cash, Traveler’s Checks or Plastic?
Though credit cards are now accepted at some places, Armenia is almost completely a cash economy. Credit cards have just begun to make their foray into the purchasing community, and are accepted only at the most expensive venues and at banks. Outside of Yerevan they are not accepted.

Likewise, the rampant hunger for the US$ (which was at one time the only currency merchants would accept) has declined slightly with the stabilizing of the Dram. People still prefer to hedge their bets by holding their savings in dollars, and you will be able to use dollars at most venues. However, the once-upon-a-time fantasy of knocking prices down by flashing your George Washington’s is a long gone dream. Armenians have a keen sense of value and trade, and know to the luma what something should cost. There are so many exchange offices and banks working it doesn’t make much sense to use the dollar anymore.

Credit Cards are now accepted at major travel agents, certain hotels, restaurants and shops. Note that the prices will be higher at these places. Credit cards accepted include Visa, Master Charge, American Express, and EuroCard. The acceptance of credit cards is a new occurrence, and it should begin to take hold in the next year. In the regions they will be of no use.

Traveler’s Checks are accepted at major hotels in Yerevan and at banks. They are not yet accepted at restaurants and shops. Banks charge a hefty fee to cash them. Major company Traveler’s checks are the predominant kind accepted. There is no American Express or Thomas Cook Agency in Armenia, and they will generally not be accepted outside of Yerevan, though ask.

In general, bring all three if you can, but expect the lion share of your expenses to be paid with cash.

Wire Transfer, Western Union: Major banks can accept wire transfers on your behalf. The cost of the transfer varies, but it is between 2 and 5% of the amount transferred. There is an additional service charge of around $10. If you are staying for a long period of time, it may be worth your while to open an account. Banks operate under International standards, and this may be your safest method of keeping your money. As a foreigner, you are freely allowed to transfer in and out as much money as you wish without restriction, as long as it is for your personal use. If you’re really stuck for cash and are willing to fork over 20% of the money sent, you can send money via Western Union, which is located at ArdShinBank ((374-2)56-06-16, 52-85-13, fax:(374-2)151-155, Telex: 243349) 3 Deghatan St., Yerevan, 375010.

Hard Currency vs. Drams: The US Dollar is by far the most used hard currency in Armenia. Other hard currencies generally accepted in Armenia include the French Franc, the Deutschmark and the British Pound. Banks can convert all Hard Currencies into Drams.

For all daily purchases, you can use Drams. Even for items priced in dollars, stores usually have an exchange office on their premises which will convert the price (and your cash) into drams. It is possible to pay in dollars, but we really don’t see why you would do it. The shop’s exchange office will convert the price and your dollars at much lower rate then you can get elsewhere, and high-priced restaurants are notorious for undervaluing the dollar. Since there are so many exchange offices around, there is no reason not to exchange into drams at all times. You will almost always save money paying with drams rather than dollars. Basic rule of thumb: if they ask for dollars, ask them to quote the price in drams. You will almost always save money by doing so.

Clean US Bills Please: One of the legacies of something which we still cannot fathom, is that locals do not like and many times refuse to accept US currency notes that are torn, mended, or have writing on them. This is a strict rule of thumb: they will not accept anything but the newest, cleanest, crispest bills. This love of cleanliness does not carry over to the dram, which can be bent, scribbled on and sweaty with the dirt of someone else’s palm, and still accepted. Bring only crisp clean Hard Currency bills with you.

Change: Hang onto your small bills, especially in the regions and at street markets. They may not have the small bills to give you your change. You might also get weighed down with 10,000 MD in 25 dram notes. Try to always have a good range of notes with you.

How Much Can I bring in and out?
There’s no limit on the amount of money you can bring in or out, as long as you declare it on entering the country, and then take out the same amount or less on exiting. Declare traveler checks as if it were cash on the declaration form. You technically can’t take any AMD out with you, but this is rarely enforced, unless you have wads of the stuff with you. Whenever you change money, you should ask for and receive a receipt. It is not necessary to have the receipt on you when you leave the country, but it can be helpful in case there is a query about the differences between money in and out. Be sure to have all credit card purchase receipts with you for carpets, paintings, and "cultural treasure" purchases (See above), and if you have drawn cash on your credit card, which increases the amount you take out vs. what you brought in.

Barter: The days of bartering Western goods for icons and jewelry are long gone. Dollar rules the day. However, offering cigarettes, Bic lighters, flashlights, and simple watches are nice gifts for those who go out of their way to help you. Forget clothing: they can get it better and cheaper than you can at Walmart.

EXCHANGE:

There are exchange offices ("Taradrami Pokhonakman Ket") scattered throughout Yerevan, at all banks, and in the larger town in the regions. Many shops, restaurants and hotels also have their own "exchange bank". Not all will issue a receipt for transaction, so if you need one, ask first. The central bank establishes a daily official rate of exchange, and all credit card purchases and banks use it accordingly. Other exchange offices usually offer a slightly higher rate. Where you are determines what kind of a rate you receive. In the regions, it will be lower. In Yerevan, where there is more competition, it will be higher. It can also vary between two exchange offices sitting side-by-side, so shop around for the best rate.

When you go to an exchange office, ask for metz coupiure (big bills). Otherwise they might hand you wads of 25 and 50 dram notes which you will need a briefcase to hold. Count your money before you step away from the office desk or window.

Approximate exchange rates for major currencies at the time of writing (November 15, 1996):

 86 

 88 

 835  

 837 

 287 

 289 

 352 

 354 

 410 

 412