According to the President of the National Bank of Georgia (NBG) Giorgi Kadagidze, the exchange rate of GEL reflects the processes that take place today in the economy.
Kadagidze told reporters on the eve at the end of a closed meeting with members of the Finance and Budget Committee of the Parliament of Georgia that the economy faced serious challenges, which were especially evident in the fourth quarter and reflected in GEL.
He says if there is inflation, the National Bank will resort to appropriate measures and involve all the mechanisms to ensure financial stability.
“It is important to note that challenges in economic growth have increased. This was particularly evident in the fourth quarter, when almost all revenues declined – exports, remittances, tourism, etc. This was reflected in GEL. Our main task is to ensure price stability. In order exchange rate of GEL not to have a significant impact on prices, in terms of their growth. Despite the fact that inflation expectations have increased, as of today, the growth of the general price level is not observed. In particular, because of positive factors such as a decline in world prices for oil and other commodity groups. It is also known that GEL has not depreciated with respect to our partner countries. Therefore, these two factors at the same time have a positive effect and, in general, the overall rate of inflation, general price level have not significantly increased. However, if we see that inflation expectations are rising and there is a significant price increase, we’ll respond adequately and appropriate actions will be taken. The decision on the further continuation of the monetary policy will be made on February 11 at a meeting of the Monetary Committee “, – NBG President Giorgi Kadagidze told reporters.