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“Wissol Group”: Reduced Investment Inflow will Continue to Put Downward Pressure on the Currency’s Value

In 2015, at least in the beginning of the year, investment inflow  in Georgia has reduced, and this will increase the pressure on the exchange rate of the national currency – Soso Pkhadadze , President of “Wissol Group”, states.

According to him, despite the decline in world oil prices,  the cost of fuel in Georgia is not reduced so dramatically as we would like due to  the devaluation of the GEL.

“Prior to the decline in international oil prices, the cost of gasoline in Georgia was about GEL 2.20, but today the cheapest petrol  Regular  costs GEL 1.60. We also have  non-branded filling stations where  major investments have not been  invested, respectively, we can afford to sell fuel  for even lower prices there – for example,   GEL 1. 50 per liter. If we take into account the degree of depreciation of the national currency, it turns out that the current price of fuel is quite realistic, “-  the businessman notes.

He believes  if today’s  rate of GEL  was  1. 75, as it was in the beginning of November, the price of fuel would be significantly lower.

“I think that Georgia’s economy looks quite nice, considering the situation in the region. It must be said objectively. Pressure on the GEL is associated with many factors – the negative trade balance, reduced remittances from abroad, general negative background, which prevents the inflow of investments. Despite the fact that in 2013 and 2014 investments were at the same level, probably in 2015, at least in the beginning of the year, inflows will decrease, respectively, the pressure on the exchange rate of GEL will grow,”- says “Wissol” President.