Lari Depreciation

Georgian Lari Continues Depreciating

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განახლებული 50 ლარიანი Photo: bloomberg.com

The Georgian lari depreciated again on January 25 due to trade issues, sinking to 2.6922 GEL against the US dollar.

The exchange rate for the euro against the lari is now 1 to 2.8941, which is 0.74 higher than the previous indicator.

The Georgian lari consistently depreciated throughout 2016. On December 20, the Georgian lari hit a historic record low, dipping to 2.783 GEL to the US dollar. According to the National Bank of Georgia, the GEL was the strongest against USD on June 10, 2016, when the exchange rate of 1 USD against the GEL was 2.127.

Due to vast depreciation, the National Bank of Georgia sold 40 million USD in the second half of December. The NBG also made an official statement on December 20 that it intends to use all means and instruments at its disposal in order to limit excessive fluctuation on the foreign currency exchange market. Their statement also read that: “the current exchange rate depreciated by more than what rational expectations would suggest.”

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