National Bank of Georgia believes Lari will stabilise

"We do not expect further fluctuation of the Lari,” says the Vice President of the National Bank of Georgia (NBG).

Bank official Archil Mestvirishvili confirmed the prediction of Government officials, who earlier today claimed the Lari exchange rate would stabilise.

"The current geopolitical challenges in the region of course affect Georgia as well. Although the external shock effect on the Lari exchange rate is now over,” he said.

Now one of the main factors of negative pressure on the exchange rate is false expectations about the Lari’s further devaluation in autumn. However the market ‘behavior’ will have the opposite effect, which will support the strengthening of the exchange rate,” said Mestvirishvili.

The NBG Vice President noted the Bank and the Government had communicated and there were no more questions about the NBG fiscal policy.

"As for the fiscal policy, budget expenditures are balanced and we do not expect a negative effect on the Lari,” Mestvirishvili explained.