Georgia currency falls. National Bank stated cause

The course of the Georgian national currency – Lari – for March fell by 3.6%. On Wednesday, the National Bank of Georgia installed on April 1, the official US dollar at the level of 3,4464 lari / $ 1 – more than 1% higher than the day before, interfax passes.

The main cause of the sharp depreciation of Lari over the past two days, the President of the National Bank of Georgia Coba Gweetadze called the devaluation of the Turkish Lira, which, he said, gave rise to negative expectations regarding the balance of payments of Georgia.

Since the beginning of 2021, the Lari course fell by 5.2%. The head of the Georgian National Bank considers the “absolute utopia” to combat the fundamental factors of the depreciation of Lari with the help of currency interventory. According to him, the National Bank can not interfere for softening the impact of factors such as a decrease in tourism income, export reduction.

in the National Bank of Georgia declare that there is a high probability that the need for interventions will continue until the end of 2021, and therefore all available tools will be used to ensure price stability, including currency interventions and accounting rates.

Such an opportunity is provided by international currency reserves of Georgia, which in 2020 increased by $ 404.8 million, or 11.5% – to $ 3 billion 910.6 million, and in January-February 2021 – another 4.2 % And on March 1 reached $ 4 billion 76.1 million, which was largely due to the involvement of significant assistance from international financial institutions.