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Bidzina Ivanishvili’s First Comment about a Drop in GEL Exchange Rate

US dollar is getting stronger in many countries,  the same  happened in Georgia- the former Prime Minister Bidzina Ivanishvili  told reporters in response to a question about the GEL exchange rate.
Ivanishvili addressed a journalist  who asked the question and noted  that there was  nothing to panic about.

“A lot of statements have been made during this week. There is nothing to panic about, the economy is solid, exchange rate varies, the US dollar is getting stronger  in many countries, as well as in Georgia. Finance Minister and others have made statements. Everything is normal, the government is working well “, – said Mr. Ivanishvili.

How did the Georgian  lari’s exchange rate against the US  dollar change in the last 10 years? The NGOSociety and Banks published statistics based on information from the National Bank.

As per the NBG’s data, from 2004 to  2008, GEL had strengthened. After the 2008 war, the rate fell, the lowest rate was recorded in June 2010 and amounted to 1.8875.

In late 2010 GEL began to get stronger and was more or less stable until 2013.

In November-December 2014 GEL record depreciation was observed   in the last 4 years and at present it was set at  1.8604.

According to Finance Minister Nodar Khaduri, ” lari will not probably come back to the old mark.

In his words, the panic that a number of experts spread among the population provides some impact on the GEL depreciation. The Minister expressed his willingness to meet with experts who criticize the government and the Ministry of Finance, and discuss with them the impact of the budget deficit on the currency.

The official exchange rate against the US dollar was established at 1.8616, respectively, compared to the previous day the national currency depreciated by 0.0012 points.

Today’s exchange rate against the US dollar  was set at 1.8604.

Recall that the drop in the exchange rate started on 18 November when  the national currency against the US dollar was set at 1.76.