On November 19, GEL has strengthened by 2.24 tetri against USD during last month, while towards Euro - by 11.52 tetri.
Eva Bochorishvili, Head of Research Department at Galt & Taggart explains the strengthening of the national currency with several factors.
“According to the available statistics, the GEL strengthening is due to the foreign inflows - we see that exports have increased significantly, the trend of recovery has continued in tourism ... All these have a positive effect and we should probably add a tighter monetary policy.
It is true that in other periods, political instability has had an immediate impact on the exchange rate, but at this stage it is not observed. The approach is different from previous periods and the exchange rate remains stable," Eva Bochorishvili said.
According to the head of the research department at Galt & Taggart, the current GEL exchange rate is close to their forecast.
"We predict a slight strengthening of the national currency for the next year and we relate it to the tourism recovery”, she said.
