As an import-reliant country, depreciation of the national currency of Georgia has always been a very sensitive issue for the country’s economy, since it raises the price level in the country and thus increases the rate of inflation. Today, PM-designated Irakli Garibashvili, who is set to hold the Prime Ministerial for the second time addressed to lawmakers at a parliamentary confirmation hearing.
During his speech, Garibashvili arranged a historical journey and mostly blamed GD’s predecessor UNM during which the country received “final devastation of the economy”. Since Georgian Dream, as a ruling party carries more responsibility on the developed events and Garibashvili expressed readiness to run the country for the second time, we have looked at one of the economic parameters – a depreciation of GEL towards US$ during the ruling of all five PMs under the Georgian Dream Party.
PM-designated Irakli Garibashvili served as the Interior Minister for a year before becoming the PM in November 2013, as Bidzina Ivanishvili stepped down. In December 2015 Garibashvili resigned and left the party. The cost of 1 US$ as of Nov 20, 2013, when Garibashvili became the PM of Georgia was 1.6751 Georgian Lari. The value raised to 2.4067 GEL for Dec 30, 2015, when he left the post. With 43.7% Georgian Lari has seen a record high depreciation towards US$ under PM Garibashvili.
GEL depreciated by 20% towards US$ from June 20, 2018, to Sep 2, 2019, when the Georgian government was headed by Mamuka Bakhtadze. GEL 2.4561 was the cost of 1US$ on June 20, 2018, when Bakhtadze came into power and was north of GEL 2.9457 on Sep 2, 2019, when he left the office.
The official exchange rate of US$ was GEL 2.9636 on Sep 8, 2019, and reached GEL 3.3044 as of Feb 18, 2021, under Giorgi Gakharia, showing11.5% depreciation.
GEL depreciated only by 2% against US$ from Dec 30, 2015, when the official exchange rate was GEL 2.4067 per one US$ and reached GEL 2.4569 on June 13, 2018, under the third PM of Georgia, Giorgi Kvirikashvili.
The modest depreciation (1%) of GEL against US$ was recorded under Bidzina Ivanishvili, who was holding the post from Oct 25, 2012, to Nov 20, 2013. The cost of US$ was GEL 1.6574 on the first day of his term and GEL 1.6751 on the last day.