GEL exchange rate volatility was preconditioned by public expectations after importers have intensified activities.
Archil Mestvirishvili, National Bank vice president: We have noted that Georgia has set floating exchange regime, which is accompanied by market fluctuations.
As to the factors affecting exchange rate, we have made comments on the issue several times, including we have published information on the National Bank website.
As to the recent volatility, fundamental factors affecting the exchange rate are positive. This behavior was preconditioned by expectations. We see that, for example, importers started purchasing foreign currency in August, instead of January-February.
The current depreciation is of temporary character, however, if we see that the exchange rate swerves from the fundamental indicator for a long period, this factor may provoke inflation and naturally, we will provide reaction under our mandate. We will tighten monetary policy. We remind you that we talk about nominal efficient exchange rate, not in relation to one currency, but we imply averaged weighed rate of currencies of our trade partner countries.