The Georgian lari hit another record low today. According to the National Bank of Georgia, the exchange rate is now 1 US dollar to 2.74 GEL. The exchange rate for the euro against the lari is 1 / 2.86.
On December 15, the Prime Minister of Georgia, Giorgi Kvirikashvili stated that “our society should forget about the currency once and for all. We should look only at the difference of prices and inflation.”
On November 15, the Government of Georgia issued an official statement regarding the instability of the Georgian lari (GEL). The regulations aim to reduce the number of foreign loans and deposits, also known as “de-dolarization.”
The government added that such an approach was unlikely to have negative effects on the economy, and that a reduction in next year’s State budget would contribute to the efficacy of the planned measures.
According to the National bank of Georgia, throughout the 2016, the GEL was the strongest against USD on June 10, when the exchange rate of 1 USD against GEL was 2.127.
In the chart below you can see the value of the Georgian lari against the euro and the US dollar throughout the year of 2016: