BAKU, Azerbaijan, June 9
By Tamilla Mammadova - Trend:
Georgian experts expect the Georgian lari to continue to rise in price at least until the end of 2020 year, Trend reports citing Georgian media.
The expectations are based on the opening of the economy after the coronavirus breakout and to the international financial aid Georgia has been given.
"The Georgian lari has strengthened by ten percent, which is rare in the recent history of Georgia. I expect this trend to continue at least until the end of this year. It is related to the international financial aid Georgia has been provided with,” said economic expert Vakhtang Charaia.
He also noted the reduction of Georgia's import dependence as one of the factors behind the lari’s appreciation, the decrease of demand for USD as a result of losing jobs amid the coronavirus epidemic and the decline in savings in foreign currency.
"We have quite a small market, and individuals as well as legal entities start buying the USD to make reserves expecting the lari depreciation especially at the end of the touristic season when foreign currency inflows are expected to decline,” said Financial expert Giorgi Tsutskiridze.
He noted that now, expectations are positive rather than negative and that makes lari to rise in price. He said that these expectations are related to the opening Georgian economy after the coronavirus crisis.
"Opening the economy is a very important factor for legal entities as well as for individuals. Legal entities are hoping the turnover to increase and expect to compensate for the loss gained while the economic activities were interrupted,” said Tsutskiridze.
Tsutskiridze noted the importance of the $3 billion in international financial aid Georgia received amid the coronavirus crisis and of the anti-crisis plan of the Georgian government in the process of creating positive expectations.
"I expect increased demand for foreign currency after opening the economy but I claim that receiving international financial aid will prevent the market from experiencing a deficit of foreign currency," he said.
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