BUSINESS
GEL devalues, officials show optimism though
06 August, 2019
Devaluation of the national currency has sent shockwaves among citizens in Georgia. Officials think that the trend will return to its normal frame, though. “The National Bank has all mechanisms to take principled steps” - Prime Minister of Georgia Mamuka Bakhtadze told reporters, commenting on the GEL’s exchange rate. He said the recent processes in the economy are healthy.

"As for the exchange rate, the analysis shows and the steps taken by the National Bank last week reaffirmed that the current
processes in the economy are healthy. Accordingly, the National Bank has all the means and mechanisms to take principled steps in this situation. Of course, it is an independent structure and it must make its own decisions, but I would like to reiterate that the last week’s events have once again confirmed that the current economic situation is healthy, expectations, including related to the depreciation of the GEL, have been excessive” - PM Bakhtadze said.

“GEL has a floating rate, it is reflected by relevant events. The National Bank and the economic team are implementing the appropriate policy to return GEL to its natural amplitude. This is a factor of time" – said Member of Parliament the parliamentary majority David Matikashvili.

Speaker of the Georgian Parliament was optimistic about the national currency.

We will certainly manage to overcome this difficult situation, - Speaker of the Parliament Archil Talakvadze said when commenting on the current GEL’s exchange rate.

He said everyone, both the authorities and the political opposition, bears the responsibility for this issue.

“The economy of the country, the well-being of our citizens and the exchange rate - this is a topic that everyone should take responsibility for, first of all, the government. We as a government have a responsibility to manage these areas, these issues. At the same time, of course, the political opposition also bears more responsibility when we finally saw that many actions, unfortunately, were used by our opponents, the hostile forces towards Georgia, against our country. Unfortunately, this has also inflicted damage on the economy, which has been reflected in the currency as well, though we have seen the interventions from the National Bank since it has an obligation to control the inflation process. I hope that the interventions that have taken place, and what the National Bank has planned for the future, will do as much as possible so that this exchange rate is not reflected on inflation. As for economic directions, the state has very positive plans in this regard. We will certainly manage to overcome this difficult situation. No one can determine Georgia's future from the outside, " MP Archil Talakvadze said.

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