05.Jul .2021 14:00

Whose responsibility Is GEL Rate? - Answer Of The Candidate For The NBG Board Of Directors

Whose responsibility Is GEL Rate? - Answer Of The Candidate For The NBG Board Of Directors
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Candidates for the NBG Board of Directors are heard at the sitting of the Committee on Sectoral Economics and Economic Policy in the Parliament.

Some of the deputies were interested in the opinion of one of the candidates Ekaterine Mikabadze, whose responsibility is GEL exchange rate.

"The mandate of the National Bank is to ensure price stability. In a context where price stability is threatened, any policy decision made by the National Bank to regulate inflation also involves stabilizing the exchange rate.

Reducing excess volatility, which has a bad effect in terms of setting expectations, although in the long run, a floating exchange rate has no alternative. It is very important for the open economy to absorb external shocks, therefore when inflation drives come from the exchange rate, it also becomes one of the important directions of monetary policy, although I would say that the GEL exchange rate is the main concern of macroeconomic policy as a whole. The growth of the Georgian economy in the medium and long term is a guarantee that we will have an exchange rate that will tend to strengthen," Mikabadze said.