BAKU, Azerbaijan, November 6
By Tamilla Mammadova – Trend:
The current situation in the foreign exchange market is alarming as the devaluation of the national currency and an unstable exchange rate weaken economic activity and hinder investment activities, said the Business Association of Georgia, Trend reports via Georgian media.
The association suggests that at least during the pandemic, additional approaches should be developed that would return the foreign exchange market to equilibrium and avoid a very heavy blow to Georgian business. The association has offered its support to the government in this process.
The association states that the recent efforts of the government to attract funds from abroad and implement different programs with borrowed financial resources had a stimulating effect' on the economy.
"All these types of assistance are provided through the conversion of foreign currency received in lari. Therefore, the National Bank needs to ensure the supply of foreign currency resources attracted to the market to sterilize the increased money supply in the circulation channels. In order to reduce the pressure on the foreign exchange market during this difficult period, the National Bank of Georgia should continue to supply foreign currency through foreign exchange auctions and make up for the currency shortfall caused by the pandemic in the country," says the Business Association of Georgia.
Georgian Finance Minister Ivane Machavariani said earlier that the depreciation of the lari is caused by the current political tensions in the country.
As of today, 1 USD costs 3.4000 lari, while 1 euro costs 4.0137 lari
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