“The problem with GEL is what the country as a whole is suffering from,” - economist Akaki Tsomaia told TV-program “Analytics". According to him, the national currency feels that the country is being isolated internationally.
“GEL is suffering from what the country as a whole is suffering from – there are mass protests, demonstrations, the government is illegitimate, which is becoming more and more clear in the international community. If the country’s government does not give up its positions, the fact that we are facing international isolation will become more and more apparent. In fact, the country is being expelled from Western civilization. We are hearing more and more such arguments from countries with leading economies. This process is becoming more widespread, and it is clear that all this is also reflected in GEL exchange rate,” - explained Akaki Tsomaia.
The economist also assessed the actions of the National Bank regarding the sale of reserves and noted that they had a wrong calculation from the very beginning. According to him, before the elections, the “big money owners” began converting GEL into foreign currency, and the NBG expected that deposits would be liquidated again after the elections, but this did not happen.
The National Bank of Georgia sold USD 591 million in October. Including USD 214 million through foreign exchange interventions, and USD 377.7 million through the Bmatch platform. The fact that the National Bank carried out record interventions in October became known on November 8 of this month, when the National Bank published a report on foreign exchange reserves, which decreased by USD 627 million to USD 4.08 billion in October.
At the same time, Natia Turnava announced that the National Bank purchased USD 124.5 million in November.
