The dram has been the official currency of Armenia since 1993, replacing the Soviet ruble after the country gained independence. Its introduction allowed Armenia to manage its monetary policy independently. Despite initial economic challenges, the dram stabilized the country's monetary situation. It is divided into 100 luma and is widely used in commercial and daily transactions in Armenia.

The word "dram" comes from the ancient Greek "drachma," which was a former unit of currency used in numerous civilizations of antiquity, including ancient Greece. The term "drachma" literally meant "handful" in ancient Greek, referring to a handful of coins. This word evolved to be used in various languages and cultures, resulting in variations such as "dram."