The first instance of a dram currency in Armenia was in the period from 1199 to 1375, when silver coins called dram were issued.

On 21 September 1991 a national referendum proclaimed Armenia as an independent republic from the Soviet Union. The Central Bank of Armenia was adopted on 27 March 1993, under the governorship of Isahak Isahakyan. However the old Soviet banknotes were legal tender until November 1993. The modern dram came into effect on 22 November 1993, at a rate of 200 rubles = 1 dram (1 USD : 377 AMD). The dram is not pegged to any other currency.

Coins

In 1994, coins were introduced by the Central Bank of Armenia in denominations of 10, 20 and 50 luma, 1, 3, 5 and 10 dram. All were struck in aluminium. In 2003 and 2004, a new coinage consisting of 10, 20, 50, 100, 200 and 500 dram coins was introduced. The 10 dram is struck in aluminium, the 20 dram in copper-plated steel, the 50 dram in brass-plated steel, 100 dram in nickel-plated steel and 200 dram in brass. The 500 dram coin is bimetallic with a brass outer ring and cupronickel centre.

The Central Bank also produces commemorative coins.

Banknotes and Paper Money

In 1993, banknotes of 10, 25, 50, 100, 200 and 500 dram were issued. Notes for 1000 and 5000 dram were put into circulation on October 24, 1994 and September 1995, respectively. In 1999, a 20,000 dram note was issued, whilst a commemorative 50,000 dram note was issued in 2001 to observe the 1700th anniversary of the adoption of Christianity in Armenia. 10,000 dram notes were introduced in 2003.

Banknotes currently in circulation are

• 1000 dram
• 5000 dram
• 10,000 dram
• 20,000 dram
• 50,000 dram
• 100,000 dram

In addition, the following banknotes are no longer legal tender (since April 1, 2004) but may be exchanged at banks: 10, 25, 50 and 100 drams. The 1993 500-dram banknote has also ceased to be legal tender since September 1, 2005, but there is a 1999 500-dram banknote that is still in circulation. 

Banknotes and Paper Money of 1993-1995 series (out of circulation)

The banknotes issued in 1993-1995 were put out of circulation after 2005.

Obverse	Reverse	Value	Main colour	Obverse description	Reverse description
		10 Dram	Brown/Purple	Yerevan Central Train Station and David of Sasun statue	Mount Ararat
		25 Dram	Yellow/Brown/Blue	Urartian cuneiform tablet and a lion relief from Erebuni fortress	Ornaments
		50 Dram	Blue/Red	National Gallery and History Museum of Armenia	Armenian parliament building
		100 Dram	Blue/Purple/Red	Mount Ararat and Zvartnots Cathedral	Armenian Opera Theater
		200 Dram	Brown/Green/Yellow/Red	St. Hripsime Church in Echmiadzin	Ornaments
		500 Dram	Green/Brown/Blue	Mount Ararat and a Tigran the Great tetradrachm	Ornaments
		1000 Dram	Brown/Orange	Mesrop Mashtots statue and Matenadaran	7th century obelisk monument from Ani
		5000 Dram	Green/Yellow/Purple	Garni temple	Bronze head of goddess Anahit kept in the British Museum

Banknotes and Paper Money of 1998 series

The banknotes of 50, 100 and 500 dram are currently put out of circulation and replaced by coins with respective values. The banknote of 50,000 dram was issued in 2001 in commemoration of 1700 years of Christianity in Armenia.

Obverse	Reverse	Value	Main colour	Obverse description	Reverse description
		50 Dram	Pink/Blue/Grey	Aram Khachaturian	A scene from ballet Gayane composed by A. Khachaturian, and Mount Ararat
		100 Dram	Blue/Grey	Viktor Amazaspovich Ambartsumian	Byurakan Observatory
		500 Dram	Grey	Alexander Tamanyan	Government House in Yerevan designed by Al. Tamanyan
		1000 Dram	Green/Pink	Yeghishe Charents	An image of old Yerevan
		5000 Dram	Yellow/Green	Hovhannes Tumanyan	Nature of Lori from Martiros Saryan's paintings
		10,000 Dram	Purple	Avetik Isahakyan	An image of old Gyumri
		20,000 Dram	Yellow/Red/Brown	Martiros Saryan	Episode from Martiros Saryan's Armenia landscape
		50,000 Dram	Brown/Red	Etchmiadzin Cathedral	St. Gregory the Illuminator and king Tiridates the Great lift up the Armenian Church on the right - a khachkar from Kecharis Monastery.
		100,000 dram	Blue/Brown	Abgar V of Edessa	In the center St. Thaddeus transfers the painting of Jesus Christ (painted alive) to Abgar V of Edessa.