20 February 2020,   16:01
Current exchange rate dynamic is negatively affected by environment surrounding presidential elections - National Bank

The National Bank responds to the fluctuation of the national currency exchange rate.

According to the statement released by the National Bank, the reasons for the changes in the Lari course are not linked to economic factors.

According to the National Bank, the environment during the presidential election has a negative impact on the currency market.

"According to our information, the reasons for the exchange rate fluctuations in the foreign exchange market are not linked to fundamental economic factors. The current exchange rate dynamic is negatively affected by the environment surrounding presidential elections which is reflected in the currency market. The National Bank strongly encourages public figures and experts to abstain from ungrounded statements and forecasts about the exchange rate dynamics to avoid the emergence of misleading expectations.

"Thus, US dollar is currently overvalued vs Lari and as a result the National Bank advises general public and economic agents not to take hasty decisions, which are likely to hurt them.

The above once again confirms the previous statements of the National Bank recommending the public to take loans in the same currency as their income to avoid the FX risks.

We would like to remind you that the goal of the National Bank is to maintain the price stability in the medium term. Hence, the NBG will use all the instruments at its disposal to avoid high inflation“, reads the statement posted on the website of the National Bank.