NBG: “We will use all available tools to prevent high inflation”

The National Bank of Georgia (NBG) promises to ensure the long-term stability of the exchange rate of the Georgian national currency, the lari, and to prevent high inflation:

We will act to ensure the long-term stability of the exchange rate and if necessary, we will use all our available tools, including foreign exchange interventions, to prevent high inflation,'' said the NBG today.

The lari began depreciating in July and reached a record high in early August, peaking at 2.97 GEL to the USD. 

The consumer price index, which measures changes in the price level of the consumer basket of goods and services, slightly decreased in July, shows the latest inflation data published by the National Statistics Office of Georgia (Geostat).

In July 2019 the consumer price index decreased by 0.02 per cent compared to the previous month, while the annual inflation rate amounted to 4.6 per cent”, said Geostat.

As the issue of the lari’s depreciation is of high interest to the public, Georgian Prime Minister Mamuka Bakhtadze once again commented on the recent situation and the NBG’s intervention amid the devaluation of the lari. 

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Last week’s behaviour of the NBG proved that processes in the economy are healthy. Expectations, including regarding the lari’s devaluation, were excessive and the NBG has all the mechanisms at its disposal to take reasonable steps”, said Bakhtadze. 

The lari reached an all-time high of 2.97 Lari to the USD on August 1. It was at its record low in December 1995, at 1.23. 

As of today, 1 USD costs 2.9321 GEL, while 1 EUR costs 3.2840 GEL.