Georgian GEL Slightly Gains Value

The Georgian national currency GEL (Lari), which started to lose value on August 9, has slightly gained value on August 16.

The National Bank of Georgia (NBG) has set a new official exchange rate of Lari. According to the data, on August 16, the price of 1 Dollar is 2.60 GEL and 1 Euro can be purchased in exchange for 2.94 GEL.

The previous rate was 1 Dollar = 2.63 GEL and one Euro = 3 GEL.

The devaluation of the Georgian currency followed the currency fluctuations in Turkey and Russia. As experts say, the GEL will soon gain value as Georgia has quite promising economic growth this year and exports have also increased.

The NBG says Georgia has a floating exchange rate regime, adding such a regime is characterized by short-term fluctuations of the exchange rate and its capacity to absorb shocks.  However, it noted in the long run the exchange rate is stable.

By Thea Morrison

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