Georgian Economy Minister supports National Bank’s “responsible policy” for economic stability, “stable” national currency

Georgian Economy Minister Levan Davitashvili on Monday expressed his “full support” for the “responsible policy” of the country’s National Bank  on foreign exchange reserves, stating the measures were “crucial for maintaining economic stability” in the country.

The foreign exchange reserves have been spent in a completely targeted manner. I firmly believe the exchange rate of the lari will maintain a stable level”, he said.

There was a pressure of ambiguity and uncertainty before the [ parliamentary elections on Saturday], but once the decision was reached, that pressure was lifted”, he said.

Instead, there will be clarity and absolutely positive trends. The function of the NBG’s reserves is to maintain stability during shocks and challenges we face. These challenges can arise from various political and economic factors, but regardless of the cause, these reserves should be utilised to ensure the economy's stable development in the long term”, Davitashvili added.

The Minister said the pressure would be “reduced in the coming period” and the exchange rate of the lari was expected to stabilise, as “all other economic indicators mentioned by the NBG are robust”.

We are confident that our economy will continue to advance at an even better pace”, he said.

Following the elections, which he described as a “clear signal for the future of the country”, Davitashvili highlighted the mandate given to the Government by the people.

The elections brought a lot of clarity [...] which is an important prerequisite for economic development”, he said.

The ruling Georgian Dream party received 53.9 percent of the vote in the elections.

Looking ahead, Davitashvili said he was foreseeing a “robust economic growth trajectory” for the last quarter of the year, predicting double-digit growth for 2024.