Georgian Gov’t expects national currency to stabilise, gain value

"The crisis period is over and we expect the national currency will appreciate in the mid-term period,” claims Georgia’s Prime Minister Irakli Garibashvili.

His announcement came minutes after meeting with the economic team and the National Bank of Georgia (NBG) president.

This morning’s meeting involving the country’s economic decision makers, was held to allow experts to strategise ways to stop the national currency, the Georgian Lari (GEL), from further depreciating against the US Dollar.

In line with continuing fluctuations, today the NBG set a new exchange rate where 1 USD will cost 2.4499 GEL. The previous exchange rate was 2.4491 GEL.

The Lari has slightly gained value against the Euro. From today 1 EUR will cost 2.7632 GEL, while the previous rate was 2.8001 GEL.

Garibashvili explained the country’s Finance Ministry and the NBG would now try to control the situation as much as possible. In his words, the NBG would use foreign exchange reserves if necessary.

Within the last few weeks I have been leading the coordinating meetings. I listened to the opinions of the Finance Ministry and the NBG and learnt their views about the Lari. Both [institutions] have the same position regarding the macroeconomic parameters. They agree the Lari exchange rate has reached its peak [and] they forecast the stablisisation of the Lari in the mid-term period,” said Garibashvili.

Georgia’s Prime Minister called on the public to remain calm and added the Government and the NBG were was doing their best to control the situation.

Georgia’s Finance Minister Nodar Khaduri also confirmed the Lari would appreciate in value against the US dollar in the mid-term period. Khaduri said the macro-economic factors which earlier influenced the Lari no longer did so.

" The Finance Ministry, the Government as well as the NBG have agreed to use all their resources to ensure such changes not to occur in the future,” Khaduri said.