The factors causing  the lari’s strengthening

The factors causing the lari’s strengthening

access_time2021-06-17 09:30:01

 Giorgi Kepuladze, founder/chairman of the Board at Society and Banks (NGO), speaks about the strengthening of the national currency which at first glance has no clear reasons.

  “The rate is strengthening but financial problems have not yet been solved and there are no tangible changes in the country’s economy. Positive expectations are the main factor to boost  the lari’s  strengthening - society is not so pessimistic and sees positive trends.

For example, the lari gained some of its value as soon as the curfew hours were reduced and  land borders opened. We will see the economic effect of all these decisions later, but the positive expectations have already played their role.

As a result of the opening of the borders,  the tourism industry is expected to recover as well as  the country’s economy. According to various forecasts, in the next six months the international tourism revenue  will amount to $ 1-1.5 billion that will   positively effect the exchange rate of the national currency.

It is difficult to make long-term exchange rate forecasts but one thing is clear if the economy grows, the lari will keep strengthening as well, ”he writes on his page.


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