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