President of National Bank of Georgia links GEL devaluation to the agotage created by the expectations on the market.
Koba Gvenetadze does not name concrete factors, what provoked the negative expectations. He declares that many factors are component of expectations and their separation is hard.
“USD rate has been increased historically and national currencies of our neighboring countries have been devaluated and all these played a role. Unfortunately, market is characterized with such circumstances, which is called “Overshooting”, raising above the level in a short-term period than conditioned by the fundamental factors. As a rule, such act is followed return on the old rate”, – the chief banker declares.
As a result of call down Thursdays’ panic, today cost of 1 USD amounts to 2.60 GEL; official exchange rate is $1/2.5871 GEL.