04.Jun .2021 19:00

GEL Is Still Depreciated, More Resources to Strengthen It – Bag

GEL Is Still Depreciated, More Resources to Strengthen It – Bag
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The national currency continues to strengthen. As a result of June 4 trading, the lari strengthened by 7 tetri against the dollar and by 11 tetri against the euro. According to the Business Association of Georgia, it is very gratifying and extremely important that the process of strengthening the lari and the rapid recovery of the economy continues, but they note that despite the recent strengthening of the national currency, the lari remains depreciated and there are still resources to strengthen it.

The BAG states that in the reality of Georgia, the GEL exchange rate is the main barometer of the economic situation and its strengthening instantly leads to a significant improvement in business attitudes and expectations, increases interest in business activity by both local and foreign investors, and others.

"In addition, the process of strengthening the lari will further improve macroeconomic indicators, including stabilizing increased inflation, which in recent years has become a very serious problem and challenge for any person, especially for socially vulnerable groups.
 
Also, the strengthening of the lari and the stability of the exchange rate should lead to a gradual restoration of confidence in the lari. This will create a strong charge in business and the economy and make fiscal and monetary policy more effective," the BAG said in a statement.