Georgian Lari strengthens against US dollar, Euro
1 USD cost 2.35 GEL from March 16

The national currency of Georgia is gaining value against the United States (US) dollar and the Euro after falling dramatically 16 months ago.

For several days the Georgian Lari (GEL) has climbed back to regain some of its value, with several small street exchange booths today selling US dollars and Euro at a lower rate than the official exchange rate offered by the country’s leading banks.

From tomorrow 1 USD will equal 2.3575 GEL, announced the National Bank of Georgia (NBG). The previous rate was 2.4175 GEL. 

Meanwhile from tomorrow 1 Euro will cost 2.6126 GEL, down from the previous rate of 2.6851 GEL.

The Lari started falling in value against the greenback in November 2014. At this time the exchange rate saw 1 USD valued at 1.75 GEL. 

Since then the Lari has dropped significantly, even reaching a historic low last month when 1 USD cost 2.49 GEL. This was a new historic minimum of Georgia’s national currency since early 1999 when the price of 1 USD equalled 2.45 GEL. 

From tomorrow the official exchange rate will drop however officials are optimistic the Lari would continue to gain value against the two major currencies.

Georgia’s Economy Minister Dimitry Kumsishvili believed the Lari would strengthen and new free trade deals would boost Georgia’s foreign trade. 

Last year when trade turnover decreased with our partners the European Union was the only direction where trade turnover increased. During the first two months [of 2016] trade turnover was reduced … but I hope it will increase in the coming months and especially when the Lari is strengthening stably. This would encourage trade turnover as well,” said Kumsishvili. 

The value of Georgia’s exports and imports (External Merchandise Trade) has decreased year-on-year (y/y), claimed the National Statistics Office of Georgia (Geostat).

Preliminary data published this week showed Georgia’s External Merchandise Trade (excluding non-organised trade) amounted to $1.413 million in January-February 2016. This was a two percent drop compared to the same period of 2015.