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Economic Indicators Comparison: Nigeria vs. Armenia
| Indicator | Nigeria | Armenia |
|---|---|---|
| Interest Rates (Lending) | 26.25% | 7.75% (July 2024) |
| Exchange Rates (Local Currency per USD) | ₦ (Nigerian Naira) 1,490/$ | AMD (Armenian Dram) ֏480-490 |
| Inflation Rate | 33.95% | 1.4% (Jul 2024) |
| Unemployment Rate | 5% | 15.5% (Mar 2024) |
| GDP Growth Rate | 2.85% | 4-5% (projected) |
| Savings Rate | 6.28% | No reliable data available |
Discussion:
- Interest Rates: Nigeria has significantly higher interest rates to address inflation and potentially attract investment.
- Exchange Rates: The Nigerian Naira is slightly weaker compared to the Armenian Dram against the USD.
- Inflation Rate: Nigeria experiences considerably higher inflation compared to Armenia’s more stable rate.
- Unemployment Rate: Unemployment is a serious challenge in both countries, but Armenia appears to have a potentially higher rate.
- GDP Growth Rate: Armenia’s economy is projected to grow slightly faster than Nigeria’s.
- Savings Rate: Nigerians have a reported savings rate, while data for Armenia is scarce.
Related Currency Pairings
Africans
Asians
The Evolution of the Armenian Dram
The Armenian Dram (AMD) has been the national currency of Armenia since 1993. Its history reflects the country’s complex political and economic landscape, shaped by the Soviet era, independence, and economic reforms.
Early Years: Prior to the introduction of the Dram, Armenia used the Soviet ruble. The Dram was introduced at a fixed exchange rate to the ruble, reflecting the country’s recent history as a Soviet republic.
Economic Challenges and Hyperinflation: Following the collapse of the Soviet Union, Armenia faced significant economic challenges, including hyperinflation, political instability, and a lack of infrastructure. These factors put immense pressure on the Dram, leading to rapid devaluation and price increases.
Economic Reforms and Stabilization: In the early 1990s, Armenia implemented a series of economic reforms, including privatization, liberalization, and fiscal consolidation. These measures aimed to stabilize the economy and reduce inflation. The government also introduced a currency board, pegging the Dram to the US dollar.
Currency Board and Pegging: The currency board helped to stabilize the Dram and attract foreign investment. However, the fixed exchange rate also limited the country’s ability to respond to economic shocks.
Recent Developments: In recent years, Armenia has made progress in economic development, with growth driven by sectors such as technology and tourism. The Dram has remained relatively stable, reflecting the country’s economic resilience.
Specific Reforms and Policies:
- 1993: Introduction of the Dram, replacing the Soviet ruble.
- 1994: Establishment of a currency board, pegging the Dram to the US dollar.
- 1995: Implementation of a structural adjustment program with the International Monetary Fund (IMF).
- 2001: Introduction of a flexible exchange rate regime.
- 2011: Adoption of a floating exchange rate system.
Sources:
World Bank
Central Bank of Nigeria
Trading Economics
Central Bank of Armenia