In March 2023, the average exchange rate of the lari strengthened from 2.6468 to 2.5876 (by 2.2%)against the US dollar compared to last month, against the euro it appreciated from an average of 2.8389 to 2.7646 ( by 2.6%). At the end of the month, the official exchange rate of the lari was set at 2.5604 against the US dollar and at 2.7862 — against the euro- the National Bank’s monthly review reads.
According to NBG, the lowest mark of the lari/dollar rate was set at 2.6169 in March, the highest - at 2.5604.
In March, the lari gained some of its value against the dollar, the Armenian dram also saw an upward trend. The euro and the Turkish lira slightly depreciated, the Russian ruble fell sharply, while the Azerbaijani manat didn’t see significant changes.
The nominal and real effective lari exchange rates keep strengthening. In March, the real effective exchange rate appreciated by 17.5%, while the nominal effective exchange rate strengthened by 27.7% annually. As for the monthly dynamics, compared to last month the real effective exchange rate of the lari appreciated by 2.3%, while the nominal effective exchange rate appreciated by 3.2%.
The effective exchange rate strengthening will negatively affect the nation’s competitiveness but will bring down imported inflation. As for trading partners, the annual inflation in March was higher in Turkey, Ukraine, Azerbaijan, Eurozone, Belarus and Armenia, and lower in the US and Russia. Inflation in the main trading partners remains high.
