Georgian PM: GEL Devaluation is too High

Mamuka Bakhtadze, the Prime Minister of Georgia, has commented on the alarming devaluation of the Georgian national currency, the Lari (GEL).

“Any analysis shows that the fundamental factors are strong today, meaning the Gel’s depreciation is too high,” he told reporters on Tuesday evening.

The head of government noted that in May and June, Georgia received the highest tourism revenue in its history and there was an expectation to mobilize more revenue from the tourism sector in the economy, which could not be achieved due to recent developments in the country.

According to Bakhtadze, it is important for the National Bank to control the inflation rate and interfere when the parameters are changed.

“There is a problem – the revenues from tourism have fallen, but I am sure that with the action plan presented, with the suggestions we have heard from the business sector, we will be able to overcome these problems," the Prime Minister said.

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

Commercial banks are already selling one dollar for three GEL.

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