PM on lari devaluation:
“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. 

Georgian Prime Minister Mamuka Bakhtadze says that “it seems this is a short-term effect and this will be regulated in the nearest future”.

Bakhtadze explained that the economies of the neighbouring countries of Georgia are influencing the lari exchange rate.

We have a small economy, and naturally, neighbouring countries influence our exchange rate and macroeconomic parameters with their big economies”, he said.

Bakhtadze mentioned all positive preconditions that would help the lari to regain value.

Export index is at a record high. Tourism figures are very good. The active process of the reduction of the trade deficit is ongoing. Consequently, all the fundamental factors are very sustainable and positive. However, of course, the recent developments in the Turkish economy, are naturally influencing our country, but since the NBG's reserves are very large and solid, our macroeconomic parameters are very sustainable”, said Bakhtadze.

Bakhtadze said that in order to avoid the influence of neighbouring countries and external factors, the government launched a programme on the larisation of loans, which would also help the citizens of Georgia be less dependent on the exchange rate.