US  dollar devaluation will not affect the national currency

US dollar devaluation will not affect the national currency

access_time2019-07-12 13:00:24

As reported, the US presidential administration says that the constant strengthening of the dollar against other currencies impedes production growth and stimulates imports and considers its  artificial devaluation.

A decision has not yet been made, but if it is adopted, whether  it will affect the national currency which suffers hard times?

 According to Chairman and CEO at Policy and Management Consulting Group (PMCG) Aleksi  Aleksishvili, if the US government decides to devalue the dollar, it will not affect the lari either positively or negatively due to Georgia’s small economy.

According to the financier, the reason for this is the small size of the Georgian economy.

“Georgia has no direct trade relations with the United States but has  a foreign trade turnover with the trading partners  of the United States. Speaking  about the exchange rate, not the nominal but the real exchange rate should be considered.  The dollar devaluation is not expected to cause any changes in the lari exchange rate , ”he says.

Only fundamental factors such as production, export, macroeconomic stability, etc. can boost the national currency.

 “Diversification of export markets should be our main goal. If  the United States will lower the dollar in relation to yuan we not bring any benefit to Georgia, ” Aleksi Aleksishvili notes.


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