31.Mar .2021 12:00

GEL exchange rate hits big business in such a way that it is unbearable – Businessman

GEL exchange rate hits big business in such a way that it is unbearable – Businessman
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"GEL exchange rate is disastrous," businessman Lasha Papashvili so responded to the sharp devaluation of the national currency.

In his opinion, the National Bank should do everything to keep the GEL exchange rate at the previous level. According to Papashvili, sharp devaluation of GEL affects not only small and medium-sized businesses, but also big businesses.

"GEL exchange rate hits big business in such a way that it is unbearable. I do not know why the National Bank raised the refinancing rate. In the whole world, increase of the refinancing rate leads the strengthening of the national currency, but here the opposite happened and GEL depreciated by 20% in a few days. GEL rate must return to the previous level as quickly as possible.

The reserves of this country are at the historical maximum and I do not know for whom the National Bank collects these reserves, business will not exist soon... ", - says Lasha Papashvili.

Papashvili notes, that the National Bank has an obligation to save businesses and the central bank should be required to do so strictly and expeditiously.

"Banking regulations should be relaxed as much as possible, because there is pressure on loans in USD, borrowing of USD is practically impossible, interest rates are rising. The National Bank should sell reserves," said the businessman.

As of March 30, GEL exchange rate devaluated by 2.72 tetri against USD and cost of 1 USD became 3.4118 GEL. GEL depreciated by 2.04 tetri against EUR and price of 1 EUR amounted to 4.0044 GEL.