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Artificially Strengthen the Exchange Rate is Impossible, NBG President Says

According to the National Bank’s President Giorgi Kadagidze, it is impossible to make the currency exchange rate artificially gain value in a country like Georgia, where the economic market is so small.

As Kadagidze said during a conference at the Rooms hotel, all countries in the region, including Georgia, have experienced economic shocks and had their currency exchange rates drop.

“Our exports have decreased, along with our financial sources. Our currency has devaluated as a result, being unable to cope with the problem, as Georgia’s economic system is too dollarized. 60% of the population has loans in foreign currency despite receiving income in local one.

What can we do in such a situation? The only way out is returning the influx of income to Georgia again. But it is impossible for the exchange rate to artificially gain value in a country like Georgia, with its small economic market,” Kadagidze said.