The lari’s strengthening lasted for several months changed to moderate depreciation.
In particular, one US dollar costs GEL2.6260, one euro - GEL2.8891 lari, the British pound sterling - GEL3.3552.
Fluctuations in exchange rates affect the exporting companies. In particular, Georgian winemakers operating in export markets suffer from exchange rate volatility.
In the words CEO of the Iago’s Wines company Iago Bitarishvili, the lari’s strengthening is more problematic for exporters than its weakening, but the most unfavorable are the exchange rate fluctuations in different directions.
“Business has faced a lot of problems lately. Our company has solved all the problems caused by the pandemic and war. Our sales outside the country are growing, products are very popular. Small companies producing natural wines with traditional methods have increased their exports, but fluctuations in the exchange rate caused considerable difficulties. The main problem faced by wine exporters is volatility and significant fluctuations in the lari’s exchange rate. Any exchange rate, high or low, would be acceptable and predictable, but such fluctuations are much more unfavorable,” he notes.
Iago Bitarishvili considers that a significant change in the rate is often a serious barrier for the product's competitiveness in foreign markets.
“Changes in the rate is often painful for the market. Transportation has become more expensive that is a problem for exports, but we will overcome everything if we know that the lari will stabilize and will not change radically during the year,” Iago Bitarishvili points out.
