According to the statement made by the Minister of Economy and Sustainable Development Giorgi Kobulia, one of the main leverages to stabilize lari exchange rate, is the diversification and in general strengthening of the economy.
This is how Kobulia answered BM.ge’s question about the plans of the government to reduce the fluctuations of lari exchange rate caused by external shocks and attraction of new investors.
“One of the main leverages to stabilize lari exchange rate, is the diversification and in general strengthening of the economy. Lari exchange rate is fluctuating, since our trade partners are countries like Turkey. If in a partner country currency depreciates, this influences our currency. Lari fluctuation allows for creating a safety cushion for our economy to balance the negative influences, which might be caused lira crash. Such a fluctuation protects us. If lira had depreciated that much and our lari was still stable, we would start buying Turkish products, which would not be good for us and the products that we produce, would not be produced because it would become more expensive and we do not want this,” – stated Kobulia.
According to the Minister of Economy, it has intense communication with the National Bank of Georgia.
“We positively assess their policy and their performance,” – noted Kobulia.
