Finance Minister: radicalism and political tensions affect lari exchange rate

Georgian Finance Minister Ivane Machavariani said that the depreciation of the Georgian national currency, the lari, is caused by the current political tensions in the country.

• National Bank of Georgia sells $60 mln at foreign exchange auction

The depreciation of the lari is a reaction to the radicalism that reigns in the country on political grounds. At the same time, these tensions in turn contribute to the further spread of the virus. Therefore, it is important that we all be responsible in this regard", said Matchavariani.

He said that it is important for the political process to return into a 'constructive framework, within the walls of the parliament', which will have a positive impact on the lari exchange rate. 

Meanwhile, we will continue the fiscal stimulus, we will continue the reforms and responsible spending that will give us a competitive economy...We have to offer more to the world markets than we do it today. What we mainly offer the world today is tourism and we saw that when tourism stopped because of the pandemic it put pressure on the lari", Matchavariani said.

He added that Georgia should offer more in high-tech fields as Georgia has the resources to do so. Matchavariani said that the government will implement reforms that drive the mobilisation of these resources.

As of today, 1 USD costs 3.4000 GEL, while 1 EUR costs 4.0137 GEL.