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Lending in national currency to reduce risks in Georgia

Finance Materials 18 July 2019 14:59 (UTC +04:00)

Baku, Azerbaijan, July 18

By Tamilla Mammadova – Trend:

Insurance of risks associated with fluctuations of the national currency exchange rate is possible by attracting resources in lari to the capital market, said Deputy CEO of TBC Bank of Georgia George Tkhelidze, Trend reports with reference to commersant.ge.

According to him, today there are a lot of different assumptions and forecasts about the exchange rate of the national currency, in particular, there is an opinion that in case of tightening Russian sanctions, the rate may fall lower than 3 lari for a US dollar.

“Immediately after the introduction of Russian sanctions on tourism and aviation, restrictions on exports were expected, there were very negative expectations, and this immediately affected the rate of the national currency. Now the expectations are a little softened and it also affected the national currency, but now in a positive direction,” said the banker.

The banker believes that exchange rate fluctuations are inevitable in the future, and the only way to reduce risks for citizens is an increase in lending in national currency, and, accordingly, an increase in the volume of resources attracted by banks in the lari.”

On June 21, Russian President Vladimir Putin, against the background of protests in Georgia against visit of some Russian officials to the country, has banned air travel to the country since July 8. According to his decree, tour operators are advised to “refrain” from selling tours to Georgia.

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