BAKU, Azerbaijan, March 14
By Tamilla Mammadova – Trend:
Against the backdrop of the outbreak of the coronavirus and the global oil crisis, Georgian national currency hits record low, Trend reports citing Georgian media.
As reported, on March 13 in the exchange offices of commercial banks in Georgia, the cost of $1 reached 3.1 lari. Over the past week, the lari has fallen in price by 6.3 percent.
On March 14, 2020, National Bank of Georgia (NBG) has sold $20 million at foreign exchange auction to control the national currency’s changing value against the USD. The weighted average exchange rate was 2.9936 lari for every $1.
As a result of the trade, lari depreciated against the USD by just 4.48 tetri, while against the euro it went down by 2.76 tetri.
As of March 14, at the rate of the National Bank of Georgia $1 costs 2.99 lari, while 1 euro costs 3.34 lari.
Meanwhile, NBG released a statement which said that the recent depreciation of the lari exchange rate was linked to uncertainty caused by the coronavirus outbreak.
Another reason for lari depreciation is the decline in international oil prices. The main task is now to maintain price stability in Georgia, to keep the low rate of the inflation, NBG said.
Earlier, Georgian Prime Minister Georgi Gakharia called on the population to peacefully and calmly endure the fall of the lari, noting that the depreciation of the national currency is inevitable against the backdrop of the coronavirus pandemic.
The head of government expressed confidence that the lari will return to the corresponding balanced indicator. At the same time, he noted that now the main task of the authorities is to stimulate economic growth.
As of today, Georgia has 25 confirmed cases of coronavirus.
Amid the coronavirus spread, Georgia has suspended direct flights with China, Iran and Italy, which are currently the largest centers of the outbreak.
---
Follow the author on Twitter: @Mila61979356