NBG outlines GEL exchange rate recent fluctuations

The National Bank of Georgia (NBG) announces that there is no risks of financial instability for Georgia in the short and long term as the GEL exchange rate fluctuations are common experienced.

According to NBG, the softened monetary politics activated budgetary expenditures and increased import turnovers affect the GEL exchange rate. The GEL plunged to the lowest point in two years against the US dollar last month.

"Our aim is not the control of currency exchange rate but the control of prices and to preserve the inflation. The currency fluctuations are common experience and with the reasonable money reserves, we dont see the risk of instability for the Georgian economy, the President of NBG Giorgi Kadagidze said at the press conference on December 27 to sum up the past year.

Moreover, he stressed that the GEL Exchange rate would be appreciated when the Georgian economy grow more rapidly in comparison to its main trade partners.

"Our monetary policy is consistent with the best international practices. This is confirmed by the International Monetary Fund as well as the rating companies' reports, Kadagidze said.

The President of NGB recommends the Georgian citizens not to follow to speculations and not to make the emotional, short-term decisions regarding money conversion.