The Georgian lari (GEL) hit another historic minimum on December 12. According to the National Bank of Georgia, the exchange rate is now 1 US dollar to 2.615 GEL.
The GEL has been steadily depreciating since November.
Prime Minister of Georgia Giorgi Kvirikashvili commented on the depreciation of the Georgian currency earlier in November 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: