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How to Act amid GEL Exchange Rate Volatility

Financier Irakli Eradze says that even sentiments can cause serious volatility of GEL exchange rate amid instable economic situation, financier Irakli Eradze told BM.GE when appraising the recent volatility of GEL exchange rate.

At this stage, there is no ground for panics and I urge Georgian citizens not to act due their negative expectations, Irakli Eradze said.

“At this stage, there are no grounds for panics and there is no need that the National Bank sell currency reserves. I would suggest population to buy and sell USD, when they personally need and not because of negative expectations, because similar negative expectations damage only our society”, Irakli Eradze noted.

When public trust in GEL falls amid instable economic conditions, even sentiments may cause serious fluctuations, he said.

‘And it requira wide analysis to determine what factors drive similar sentiments. Government is to ensure such reliable economic and business environment, when similar shocks will not depend on sentiments”, the financier noted.

‘Since our country depends on imports, even in midterm period the national currency fluctuations will definitely cause inflation processes and in this case it will be difficult for the Government and National Bank to curb the inflation”, Eradze said.