23.Apr .2021 12:30

Vice President of NBG names the reasons for GEL depreciation

Vice President of NBG names the reasons for GEL depreciation
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Stalled tourism is the main factor for GEL depreciation, - Papuna Lezhava, Vice President of the National Bank of Georgia declares.

According to Papuna Lezhava, the lost income from tourism in 2020 had a negative impact on the economic situation in the country.

“GEL depreciation is mainly due to stalled tourism. Georgia lost up to 3 billion in revenue from this sector only in 2020. It is noteworthy that Russia restricted flights in 2019 as well. Currency depreciation and instability in our neighboring and trading partner countries also affect GEL rate”, - said Lezhava.

The Vice President of the National Bank commented on the initiative of the Chairman of the Committee on Sectoral Economics and Economic Policy, which provides creation of a management plan for GEL exchange rate by the NBG.

"We welcome to talk to various interested parties about economic issues. As for the targeting of GEL exchange rate, this has never been our goal and we do not plan to determine it in the future. It is good to reduce GEL fluctuation and we have initiative in these directions. We will be involved in this type of negotiations with great pleasure”, said the vice president of the NBG.