Economy Minister: depreciation of Georgian lari mainly caused by “emotional factors”
The high official also noted there were no “objective” grounds for the depreciation of the national currency, saying ongoing political processes in the country and “agitation created around the national currency” were contributing to the devaluation. Photo: Nino Alavidze/Agenda.ge
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Macroeconomic parameters in Georgia are “very healthy and stable” and depreciation of the Georgian lari exchange rate is mainly caused by “emotional factors,” Georgian Economy Minister Levan Davitashvili said on Tuesday.
In an interview with Imedi TV channel, the high official also noted there were no “objective” grounds for the depreciation of the national currency, saying ongoing political processes in the country and “agitation created around the national currency” were contributing to the devaluation.
Davitashvili called on the Georgian public not to panic regarding the exchange rate, assuring citizens the macroeconomic parameters in the country’s economy were solid.
He also pointed out the economic growth in Georgia, which amounted to 18 percent in January, calling it an “unprecedented” figure and adding the foreign currency inflow in January had increased as well, totalling $168 million.
No matter how much [some] talk about trade failure today, of course, it could not be reflected as instantly in specific economic numbers and parameters,” Davitashvili said, adding “these are mainly emotional factors which require a correct, coordinated and unified policy.”
Davitashvili also called the economy a “very sensitive area” requiring a stable environment which eventually would be reflected in the state of the national currency.
The Georgian government has demonstrated a very high level of crisis management several times, Levan Davitashvili, the Minister of Economy and Sustainable Development, said on Tuesday.
The Consumer Price Index in Georgia increased by 0.9 percent in February 2022 month-on-month, while the annual inflation rate totalled 13.7 percent, the latest inflation data of the National Statistics Office of Georgia (Geostat) shows.
The estimated real Gross Domestic Product (GDP) of Georgia increased by 18 percent in January 2022 year-on-year, the latest data from the National Statistics Office of Georgia (Geostat) shows.
Commercial banks in Georgia loaned 42.16 billion GEL and received deposits of 36.77 billion GEL in January 2022, the National Bank of Georgia (NBG) says.
Georgian Agriculture Minister Otar Shamugia has said no shortage in stocks of food and primary consumer goods is observed in Georgia following the outbreak of hostilities in Ukraine last month, stressing the importance of maintaining a “stable supply” of products in the market and avoiding “unreasonable price increases”.
Commercial banks and card processing systems operating in Georgia are not in cooperation with the Russian payment system Mir, the National Bank of Georgia said on Wednesday.
Georgian Airways on Wednesday denied selling tickets through Russian payment system Mir, following a controversy linking the airline to the platform on the backdrop of international sanctions on Russia for its invasion of Ukraine last month.
There is no need for Georgian citizens to stock up on food products as supply lines are working, Levan Davitashvili, the Georgian Economy Minister, has told the public amid claims the country might be facing a shortage due to the war in Ukraine.
Problems related to the supply of wheat and flour in Georgia are neither observed nor expected, Economy Minister Levan Davitashvili said on Wednesday, adding it was foreseeable the export tax would be removed and the country would be able to buy wheat “on better terms and cheaper.”
The National Bank of Georgia (NBG) offered 50 million USD at the foreign exchange auction on Wednesday of which 39.5 million USD was sold, the bank announced yesterday. In the first foreign exchange intervention this year, the NBG made the sale with an average weighted rate of 3.3947.
The current foreign exchange rates show concerns about the Georgian lari depreciation are “groundless,” Georgian Finance Minister Lasha Khutsishvili said on Thursday.
Khutsishvili asserted all sources of currency inflow in the country, including export and tourism, were “functional” and “growing.”
Foreign direct investments (FDI) in Georgia totalled $1.152 billion in 2021, which is two times higher compared to the adjusted data of 2020, the National Statistics Office of Georgia (Geostat) reported in its latest data.
The role of the Pension Fund in the development of the economy, importance of long-term investment sources and legislative initiatives for the Fund were in the focus of a meeting between Georgian Prime Minister Irakli Garibashvili and members of the Pension Fund Investment Board on Tuesday.
Remittances to Georgia from abroad reached $183.4 million in February 2022, marking a 13.7 percent increase compared to the same month of last year, the National Bank of Georgia (NBG) announced on Tuesday.
Average monthly earnings in Georgia increased by 149.1 GEL ($46.5/€42) in the fourth quarter of 2021, a 11.3 percent increase compared to the same period of the previous year, and amounted to 1,463.8 GEL ($456.5/€412.7), data from the National Statistics Office of Georgia (Geostat) show.
A digital transformation council will be established in Georgia, with the involvement of both the Government and private sector, in order to “fully transform” the economy and develop the field of information technology (IT), Levan Davitashvili, the Georgian Economy Minister, announced on Friday.
An increase in prices of construction materials in the market due to the global pandemic and the ongoing war in Ukraine was the focus of a meeting between Georgian Economy Minister Levan Davitashvili and representatives of Georgian construction companies on Monday.
Commercial banks in Georgia loaned 43.25 billion GEL ($13bln/€12bln) and received deposits of 37.63 billion GEL ($11bln/€10bln) in February 2022, the National Bank of Georgia (NBG) announced on Friday.
Commercial banks in Georgia loaned ₾43.32 billion ($14bln/€13bln) and received deposits of ₾37.10 billion ($12bln/€11bln) in March 2022, the latest data from the National Bank of Georgia shows.
Georgia is approaching the stage where it will introduce a digital national currency in pilot mode, with a “full-scale change” to take several years, Economy Minister Levan Davitashvili said on Wednesday.
Commercial banks in Georgia loaned ₾43.15 billion ($15bln/€14bln) and received deposits of ₾37.23 billion ($13bln/€12bln) in April 2022, the latest data from the National Bank of Georgia shows.
Foreign direct investments in Georgia totalled $351.8 million in the second quarter of 2022, marking a 9.1 percent increase compared to the adjusted data of the same period in 2021, the National Statistics Office of Georgia reported in its latest figures on Thursday.