Economy, Currency

After the breakup of the USSR, Armenia continued to use the Russian ruble as its currency. Beginning in mid-1993, however, the Central Bank of Russia refused to accept rubles printed before that year. This action caused a massive inflow of rubles to Armenia and other former Soviet republics where the ruble was still allowed to circulate. Inflation accelerated greatly as a result of the influx of old rubles, which were worthless in Russia. The Central Bank of Russia demanded strict control of the new ruble, prompting Armenian leaders to issue a separate currency, called the dram, in November 1993. The dram was originally issued at a rate of 200 rubles per dram. In 2000 the exchange rate with the U.S. dollar averaged 540 dram per U.S.$1.