“The National Bank adheres to a free-floating exchange rate regime, which means we do not artificially stabilise the GEL,” stated Natia Turnava, President of the National Bank of Georgia (NBG).
She emphasised that the current economic situation remains quite favourable, with only minor fluctuations primarily driven by psychological factors.
“Under a freely floating exchange rate system, we do not artificially strengthen the lari, nor can we—just as no other small open economy can. What is currently supporting the GEL’s strength are solid macroeconomic fundamentals: robust economic growth, a healthy external account, and a relatively improved deficit, backed by effective monetary and economic policies,” Turnava explained.
She highlighted that the confidence in Georgia’s financial markets has been bolstered by these policies, which is reflected in the strength of the lari.
“Our internal economic fundamentals, although external factors and market perceptions also play a role, largely influence the currency’s stability. Fluctuations today are minor and mostly psychological, similar to last year,” she added.
Turnava concluded, “Overall, the economic environment remains solid and trustworthy. The GEL’s strength is sustainable, and this positive trend is expected to continue.”