Georgian currency’s fall caused by global economic problems – National Bank
Tbilisi, Georgia, Feb. 27
By Nana Kirtzkhalia - Trend:
The fall in the rate of the Georgian national currency, the lari, is predetermined by fundamental economic problems, the president of the county's national bank, Giorgi Kadagidze, told reporters Feb. 27
He urged the country's politicians to stop the attacks on him and the national bank, as it "may lead to irreparable consequences."
Kadagidze said these attacks do not harm him, but the national bank, and contribute to the deterioration of economic situation, scaring off investors and preventing the stabilization of the lari's rate.
"A hailstorm of statements against the national bank's president brings only damage to us on the backdrop of the two-day stabilization of lari's rate, and yesterday we observed a serious strengthening between 2.26 laris and 2.16 laris per US dollar. This process will continue, but it needs to be calm," he said.
He said the reason for the fall of lari's rate lies not in the actions of the national bank, which was trying to stabilize the situation, but in the fundamental problems of Georgia's economy and external factors.
The national bank's head stressed that he has repeatedly warned the government about negative consequences of reducing the volume of currency earnings, export performance, as well as the number of tourists.
Kadagidze said that in the current situation, it is not productive to spend the currency reserves to intervene in the course of trading.
He also said that until yesterday, neither he, nor the national bank's work received complaints from the government or the parliament.
Kadagidze declined to comment on a statement by the former prime minister of Georgia, Bidzina Ivanishvili, who accused Kadagidze of sharp fall in lari's rate.
Following Ivanishvili's statement, Kadagidze faced complaints from the deputy prime minister and the minister of economy, Giorgi Kvirikashvili and the parliamentary majority leader, David Saganelidze.
Lari's rate against the US dollar began to decline on Nov. 20, 2014. Following the last trading, lari's rate was set at 2.16 laris/$1.
The rate of the Georgian currency was within 1.74 laris - 1.76 laris per one dollar until Nov. 20, 2014
Georgia's national bank began in February to tighten monetary policy due to the expected rise in prices caused by the fall in lari's rate.
Edited by SI