Central Bank: No Threat of GEL Devaluation

The Georgian Lari (GEL) fell 13.4% in a week reaching 1.65 against U.S. dollar on November 10.

Davit Amaglobeli, the acting president of the Georgian National Bank, said there was no threat of GEL’s further weakening.

“Today the GEL exchange rate reached a new equilibrium and there is no need for an adjustment of this new rate,” Amaglobeli said. “The National Bank will guarantee the exchange rate stability. The National Bank has enough reserves for that. There is no threat of the GEL’s devaluation in a long-term perspective.”

“These recent adjustment of the currency rate will have negative consequences on the inflation,” he added.

But prices have already jumped on various goods in Georgia, which depends heavily on imports. For example prices of medicines in PSP drugstore network in Tbilisi were up by about 12% on November 10.

According to the central bank the annual inflation rate by end-October slowed to 7%, down from 10.6% in September.

This post is also available in: ქართული (Georgian)