NBG President: GEL Devaluation is Caused by External Shocks

The President of the National Bank of Georgia, Koba Gvenetadze, has made the first comment regarding the alarming devaluation of the Georgian national currency, the Lari (GEL).

According to him, the devaluation of the national currency is caused by external shocks and reduction of tourist flow in the country.

As Koba Gvenetadze told journalists, today “Georgia is going through an external shock”.

“Today Georgia is going through an external shock. Expected number of inflows has been reduced in the country. According to the statistics and number, it is clear that fewer tourists visit Georgia. This, of course, affects the exchange rate. This is a very painful process”, Gvenetadze said.

However, as the President of the National Bank noted, if they see that the exchange rate results in inflation, the National Bank will use all the available tools to suspend the process.

The Georgian national currency, the Lari (GEL) continues to depreciate.

Commercial banks are already selling one dollar for three GEL, while at the Bloomberg Trade Terminal, the rate is still rising.

It will be clear in a few hours whether the GEL will continue to depreciate. The rate will be announced at 17:00 at the end of the day. Until then, there is panic in the market. Businesses are already announcing a rise in prices on food and daily consumables.

Related Story: Georgian Lari Continues to Depreciate: Dollar Price Hits 3 Gel

By Ana Dumbadze