“If the current rate is maintained, the losses will amount to hundreds of thousands or even millions”

“If the current rate is maintained, the losses will amount to hundreds of thousands or even millions”

access_time2020-03-25 12:00:28

According to President of Georgian Distributors Business Association (GDBA), if the national currency continues to depreciate, the country will face severe economic downturn.

 “The national currency depreciated by 60% over the week that causes losses to importers, which directly depend on the exchange rate. If the current rate is maintained, the losses will amount to hundreds of thousands or even millions. The question is how should they continue to work. It’s clear that this is a global crisis, but it differently affects the countries with stable currencies and the countries like Georgia,” he explains.

 According to him, in Georgia the epidemic has not really started yet but the situation is already very difficult.

 “When we talk about tourism, we should realize that distribution is directly connected with this sector, this is an inextricable chain, and if the tourism sector sees a decline, it causes harm to distribution. All companies that stopped operating have large financial obligations and debts, and they will have to pay ksuppliers in dollars, ” - Iva Chkonia notes.


 The businessman believes that the Georgian government should have created plan “B” and in the current situation actively interact with the National Bank.

In Iva Chkonia’s words, the government should have been prepared for any troubles in the country where the national currency has been falling for 6 years.

 “It is clear that we deal with panic, rush demand, but there should not have been such a massive devaluation. The government and the National Bank must collaborate, make statements every hour as their silence promotes much more panic than the real situation, ”Iva Chkonia concludes.


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