The Georgian lari (GEL) hit another historic minimum on November 29 when the National Bank of Georgia reported that the exchange rate had sank to 1 US dollar to 2.531 GEL. As of November 28, 1 US dollar is equivalent to 2.508 GEL. The value of the Georgian lari against the euro has reached 2.682 GEL / 1 euro.
Prime Minister of Georgia Giorgi Kvirikashvili commented on the depreciation of Georgian currency earlier today and stated that the reasons for the depreciation are much in part due to “the artificial agiotage that was created in the country. I don’t blame opposition members for the depreciation, but I once again want to emphasise that this is an important issue and it needs more cooperation in order to be solved.”
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.
In the chart below you can see the cost of the Georgian lari against the euro and the US dollar throughout the year of 2016: