Georgia’s central bank: presidential election period negatively affecting exchange rate of GEL
The US dollar has reached 2.7656 GEL and 1 EUR - 3.1766 GEL. Photo: N. Alavidze/Agenda.ge
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The Georgian national currency, the lari, continues to depreciate in value against the US dollar as well as the euro. The National Bank of Georgia (NBG) explains that the presidential election period is the reason behind the depreciation.
Recent exchange rate fluctuations are unrelated to economic fundamentals; the current exchange rate dynamic is negatively affected by the environment surrounding the presidential elections, which is reflected in the foreign exchange market”, read the NBG statement.
The NBG said that there is a floating exchange rate regime in Georgia and this is characterised by short-term fluctuations on the foreign exchange market.
The NBG strongly encourages public figures and experts to abstain from ‘ungrounded’ statements and forecasts about exchange rate dynamics to avoid the emergence of ‘misleading expectations’.
The NBG also advises the general public and economic agents ‘not to take hasty decisions, which are likely to hurt them’.
As for the public, following the NBG recommendation, people should take loans in the same currency as their income to avoid risks.
The US dollar has reached 2.7656 GEL and 1 EUR - 3.1766 GEL. This is the official exchange rate set by the NBG. However, the exchange rate is higher at exchange booths around the country and at local banks.
The Economy Minister Giorgi Kobulia presumes that the Georgian lari will gain value at the end of the year.
The state of the economy is good. Export is increasing and the economy has grown by six per cent. This will be reflected on the exchange rate”, Kobulia said.
Kobulia said that the lari’s tendency to strengthen is expected ahead of the New Year due to the inflow of foreign currency and from tourism.
The Georgian national currency, the lari, has depreciated in value by 6.5 tetri against the US dollar and by 4.3 tetri against the Euro in just one day.
Georgia’s National Bank (NBG) has released a statement in which it explained that the current devaluation of the national currency, the lari, is temporary and is caused by false expectations amongst the public that the lari would be devalued in autumn.
The National Bank of Georgia (NBG) has sold millions of dollars at the Foreign Exchange Auction to control the changing value of the national currency against the US dollar.
"We expect the [Georgian] national currency to stop devaluing [against the US dollar] in the near future,” says the National Bank of Georgia (NBG).
The National Bank of Georgia (NBG) has purchased 10 million dollars at foreign exchange auction to control the national currency’s changing value against the US dollar.
The National Bank of Georgia (NBG) has purchased $15 million at foreign exchange auction to control the national currency’s changing value against the US dollar.
“This is a short-term effect and will be regulated soon”
The Georgian national currency, the lari, has depreciated in value against the US dollar and the euro in recent days, with 1 USD costing 2.7799 GEL, while 1 EUR costs 3.0954 GEL.
Governor of the National Bank of Georgia (NBG) Koba Gvenetadze presented the annual report for 2018 at the Parliament of Georgia today and also answered questions of MPs regarding the recent fluctuation of the Georgian national currency lari. The Georgian national currency, the lari, has depreciated in value against the US dollar and the euro in recent weeks, with 1 USD costing 2.7344 GEL, while 1 EUR costs 3.4782GEL today.
The anticipated drop of tourists from from Russia, following Russian President Vladimir Putin’s ban on flights to Georgia this summer, “is reflected on the currency market”, announces the National Bank of Georgia (NBG).
Recent developments have brought dissonance to the Georgian economy, however the macroeconomic factors are quite healthy, said Georgian Prime Minister Mamuka Bakhtadze while commenting on the devaluation of the Georgian national currency, the lari, today.