In late January, in Georgia prices of all kinds of products will increase – “Commersant” was told by importers.
According to Director of “GD-Holding” Uta Maziashvili, due to the depreciation of the national currency, local products will become more expensive because the raw materials for local production are imported from abroad.
“We try to keep the price level from the reserves, but GEL has been steadily declining, so prices will inevitably rise” – says the businessman.
Due to the devaluation of the national currency, food prices have already hiked.
Vakhtang Sadzaglishvili, Director of the distribution company “Sharm Trading”, says that the management was forced to increase the prices of its products by an average of 5%.
“If the exchange rate of GEL does not exceed GEL 2 per dollar, then another round of price hike can be avoided. But if exceed, the further rise in prices of products is inevitable “- he notes.
Guram Brodzeli , CEO of “ Lux 200” dealing in food import says that importers are completely dependent on the national currency rate and have to adjust prices in parallel with the GEL devaluation.
“In the backdrop of exchange rate fluctuations, to maintain prices at the same level became almost impossible. The most painful is the rise in food prices, “- he underlines.
According to Director of the Center for Economic Research at the Caucasus University Mikheil Dundua, in this situation, much of the responsibility lies with the National Bank of Georgia (NBG).
“When the national currency began to fall, the government received an international loan of $ 145 million, and these funds were directed to the reserves of the National Bank. Lari was released into circulation, but the National Bank did not put dollars into circulation. This is a mistake, as it turns out that no matter what amount the government will attract – all currency will go into the reserves while in circulation will remain only the national currency. It will have the same effect as uncontrolled emissions. In the current situation, the National Bank has to issue into the financial market at least half of the received currency, “- the expert believes.
In his opinion, in February imports decreased, respectively, the rate of GEL is likely to stabilize.