Natia Turnava, Acting President of the National Bank of Georgia considers, that there is a short-term fluctuation and the market will stabilize on its own.
According to Natia Turnava, the current depreciation of the lari exchange rate is related to the expectations, although the main macroeconomic parameters in the country are stable and the country has high economic growth.
"We see current fluctuation as a short-term challenage based on analyzing fundamental macroeconomic factors. Fundamental macroeconomic factors are healthy. When there are healthy macroeconomic factors, then there is no long-term economic reason that would lead to pressure on the exchange rate and depreciation.
The global environment is changing, the domestic situation is not simple. But I would like to say that our economy, despite internal challenges, shows enviable resilience to these shocks, our economic growth is high and strong compared to the other region countries. The average growth rate for 10 months is 10% and international organizations are raising expectations and noting that Georgia will be a leader in the wider region in economic growth. It is also important for us that this high growth does not cause inflationary pressure and inflation is also low and for the last 20 months inflation has been consistently low and this means that growth is achieved at the expense of productivity growth and there is a vry healthy synergy.
Therefore, we are only dealing with the psychological reaction of the market. Of course, sentiments have a great impact on the market, due to political instability. I also want to mention the disinformation and statements that are being spread regarding the lari exchange rate, because traditionally, the target is the national currency, but this seems to no longer be valid and only causes temporary concern," said Natia Turnava.
