Georgian lari ranked 12th in the world by power of devaluation

Georgian lari ranked 12th in the world by power of devaluation

access_time2020-04-01 15:00:07

The coronavirus pandemic has an unprecedented negative impact on the global economy, including Georgia, but the reports in the media that the Georgian national currency is the first in the world by power of devaluation are not true, Koba Gvenetadze, President of the National Bank, says.

According to Gvenetadze, the  lari depreciated approximately as much as the national currencies of other emerging markets.

According to Bloomberg, from January 1 to March 31, 2020, the Georgian lari is the 12th in the world by power of devaluation. Zambian kwacha (24%), Brazilian real (23%), Russian ruble (22%), South African rand (22%), Namibian dollar (22%), Swaziland lilingan (22%), Sudanese pound (21%), Mexican peso (19%), Colombian peso (18%), Belarusian ruble (13%), Lesotho lot (16%) are ahead of Georgian national currency.

 The Georgian lari devalued by 14% almost as much as the Ukrainian hryvnia (13%).

the Norwegian krone is also among the depreciated currencies despite  it’s  a currency of  a highly developed country and  fell  by 13%,  almost as much as the lari

Expert Nika Shengelia says the statement of the central bank’s President is not true, and the lari has fallen more than all the currencies of the region and developing countries not only due to the COVID-19 outbreak but the banking regulations as well.

“For example, the Armenian dram has  fallen  by 20% in 2 years, while the lari in the same period has lost 70-80% of its value. The same happens to the Azerbaijani manat, which has not changed at all in recent weeks. The  Russian  ruble is dependent on oil while our currency is no less dependent on tourism. The National Bank is not coping with its responsibilities, and is trying to find an excuse in the coronavirus outbreak. But the pandemic equally affects both Georgia and Armenia as well as other countries where  the epidemic situation is much worse than ours, ”the expert explains.


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