KARABAKH INTRODUCES CURRENCY

PanARMENIAN.Net - Initially the introduction of Karabakh dram was aimed at the propaganda of Karabakh state system. Banknotes produced by unrecognized countries are greatly valued by numismatists all over the world. Money is an attribute of sovereignty. NKR is an established country and the existence of own currency will become another symbol of sovereignty. However it is fairly obvious that in terms of economy the issue of Karabakh dram does not have special importance. The economy of Karabakh is fully integrated to the economy of Armenia and the introduction of Karabakh dram is not aimed at making any economical changes. This is why it looks like the unexpected announcement of Tigran Sargsyan simply means that Karabakh dram will serve as some sort of a substitute to Armenian dram. Being equated to "AMD" "NKD" will only replace "AMD" in the operations in the home market. It should be noted that by its design the Karabakh dram is very much alike Armenian dram.

The decision on the issue of Karabakh currency was made last year. The banknotes were printed last winter but have not been officially put into circulation. However, 2 and 10 dram Karabakh coins can be bought on numismatic auctions through internet shops. For example the "eBay" internet shop sells 2 dram coins for 0.99 pounds. Thus, for the government of Nagorno-Karabakh the introduction of NKD is not only a way to propagandize national state system but also an income source for the state budget.

Azerbaijan's reaction to the issue of Karabakh currency was very painful and was about to provoke diplomatic scandal. Official Baku applied with protest to the US Department of State and the Ministry of Foreign Affairs of Austria. (The banknotes were printed by the American "Education Coin Company" and "Austrian State Printing Works") The Ministry of Foreign Affairs of Azerbaijan demanded to pass all the printed banknotes to the Embassy of Azerbaijan. The US Department of State promised to support in fulfilling the demand. However, it is known that NKD banknotes are already at the disposal of the Central Bank of Nagorno-Karabakh Republic and not the special services of Azerbaijan.

From unrecognized countries the Prednestrovian Moldavian Republic is still the only one that has issued its own currency. (Abkhazia and Osetia use Russian roubles). Tiraspol recently celebrated the 10th anniversary of their currency which is by the way called rouble and is printed in Poland. At present there are 1, 5, 10, 25, 50, 100, 200 and 500 rouble banknotes and change coins in the circulation. The exchange rate is 8 roubles for 1 US dollar. The Prednestrovian case shows that the currency of an unrecognized country can be established and Karabakh will soon prove that once again.