The National Bank managed to maintain the lari’s stability throughout the interventions carried out in October, however, economists expect another wave of the lari’s depreciation during the New Year period. Experts explain that traditionally during the New Year period, the expenditure side of budget funds increases. Both consumers and businesses spend more which ensures the influx of a significant amount of laris into the market. This will be followed by fluctuations in the national currency exchange rate.
Economist David Kikvidze is confident that, given this factor, the National Bank will have to sell dollars from its reserves in the New Year period.
"We are approaching the New Year usually characterized by high fluctuations. The lari is expected to start falling again, since the expenditure side of the budget execution is very high during this period. As a rule, the last stages are on the New Year period. Apart from that, businesses and individual consumers spend large sums of money during the New Year period. We expect that the lari will start to fluctuate again and the National Bank will have to carry out certain interventions during the New Year period," says David Kikvidze.
