Irakli Zarkua, the parliament member of the ruling party Georgian Dream names several factors which resulted strengthening of the national currency against USD, which includes double-digit economic growth (10.6%), increased exports and remittances, tight monetary policy by the NBG and reduced refinancing loans.
At the same time, Irakli Zarkua notes that it is important not to create wrong expectations on the market due to the sharp strengthening of GEL.
"Neither radical strengthening nor devaluation is good; The exchange rate of the national currency should be predictable. This is critical for business as well as for any initiative, and the National Bank is in charge of all this," Irakli Zarkua said.
Georgian Dream MP expects that strengthening trend of GEL, as well as reduction of inflation will continue this year.
"In December, we have said that GEL will start strengthening in 2022 and now it is important to turn the strengthening of the national currency into reduced inflation.
Moreover, there should not be deficit spending, which we had last year due to the pandemic... Also, on the other hand, coordinated work of the government and the National Bank will allow us to keep the GEL stable and at the level that is conditioned by our economy.
We all know that price of 1 USD cannot be 1.7 GEL, but there is the possibility that GEL exchange rate will range within 2.5-2.8 GEL.
We all expect that inflation will be close to these parameters and the target rate is 4.5-5%, which will help stabilize prices on the market. We have these expectations and there will be no radical deviation from these forecasts, "Irakli Zarkua said.
