Georgian GEL Continues Devaluating

The Georgian national currency GEL (Lari), which started to lose value on August 9, has further depreciated against the US Dollar and Euro.

The National Bank of Georgia (NBG) has set a new official exchange rate of Lari. According to the data, on August 14, the price of 1 Dollar will be 2.57 (2.5694 GEL), and 1 Euro can be purchased in exchange for 2.92 GEL.

The previous rate was 1 Dollar = 2.5339 GEL and one Euro = 2.9061 GEL.

The devaluation of the Georgian currency followed the currency fluctuations in Turkey and Russia. As experts say, the GEL will soon gain value as Georgia has quite promising economic growth this year and exports have also increased.

The NBG says Georgia has a floating exchange rate regime, adding such a regime is characterized by short-term fluctuations of the exchange rate and its capacity to absorb shocks.  However, it noted in the long run the exchange rate is stable.

By Thea Morrison

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14 August 2018 10:12