PM: We Expect the GEL to Return to a Stable Benchmark

“We have every expectation that the GEL will return to its natural and stable benchmark”, Georgian Prime Minister Mamuka Bakhtadze stated at a briefing on Friday.

“The Lari exchange rate shows a strengthening trend over the last two days, which was expected,” he added, noting that this weeks’ negative background and negative expectations contributed to the exchange rate appreciation.

“The key parameters of economic development, including the volume of exports, are quite positive and show strong dynamics," he said. "The assessment of all agencies, including commercial banks, are the same: that we have excessive depreciation of the GEL. Consequently, we have every expectation that it will return to its natural and stable benchmark."

The Prime Minister also touched upon the tourism sector, noting that in this regard, revenues are decreasing. He highlighted the recent growth rate cannot continue in the coming months.

“Unfortunately, revenues are decreasing in the tourism sector due to well-known events. We had a very high growth rate. Ajara had almost 40% growth in tourism in June compared to the same period last year. Unfortunately, due to the challenges that have recently arisen, it will be difficult for us to continue the same trend in the coming months, though I am sure that we will return to such a growing dynamic in the tourism sector,” Bakhtadze said.

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By Ana Dumbadze