National Bank President: Georgian Economy Suffers from External Shocks
On July 30 Koba Gvenetadze, president of the National Bank of Georgia (NBG) answered questions of reporters regarding the current economic situation in Georgia, which has assessed as an eternal shock.
The National Bank of Georgia (NBG) will take due steps if the GEL exchange rate devaluation grows inflation expectations.
‘On July 24 the NBG released a statement and after the meeting of the monetary policy committee we discussed these issues. Today, Georgia is suffering from external shocks. Tourist inflows have declined and this tendency naturally affects the exchange rate. this is a painful process.
In the event we see that the exchange rate affects inflation, we hold various instruments to stabilize the situation.
We believe that the current nominal exchange rate devaluation is bigger compared to the volume of external shocks. If we detect that similar devaluation is transmitted to inflation, we will take measures.
I can say that today macroeconomic environment is good and the declining tourist inflow emerges as one of the factors devaluing the GEL”, Koba Gvenetadze said.