Finance Minister: Gel Rate Depends on Many Things, Including Coronavirus

Finance Minister Ivane Machavariani said while attending the economic conference 'Georgia and the World 2020' being held in Tbilisi, that the current strengthening of the exchange rate of Georgia's national currency, Lari (GEL) is not related to artificial factors.

While commenting on the issue, the Minister told reporters that the strengthening of GEL is not related to the monetary policy of the National Bank, as the monetary policy is aimed at inflation targeting.

“Given that the GEL has depreciated and now its exchange rate is being strengthened again, no responsible person makes or should make a forecast regarding the issue. When we say that the GEL will find its balanced rate, it is sometimes depreciated and sometimes strengthened. By today's analysis, we are now in this balanced area. What will happen in two or three months depends on many factors," the Minister said.

He noted that the Lari exchange rate will depend on various circumstances, including the impact of foreign events, tourism development and traffic restrictions due to the new coronavirus.

"It is important that we refrain from artificial interference," Machavariani concluded. 

By Ana Dumbadze 

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