Opposition politician slams National Bank over Lari depreciation

Roman Gotsiridze has criticized the National Bank of Georgia, accusing it of making a mistake by failing to respond to the depreciation of the Georgian lari and thereby contributing to public anxiety.

Gotsiridze, who previously chaired the bank, claimed the central bank’s inaction could fuel panic, particularly as some people may link the weakening of the national currency to the ongoing developments in Iran and form negative economic expectations.

“The National Bank is making a mistake and contributing to the creation of panic sentiment. It is not reacting to the depreciation of the lari at a time when many may attribute this to the developments in Iran, which could create negative expectations,” Gotsiridze said.

He also noted that the National Bank purchased $2.4 billion in foreign currency last year, which he said slowed the appreciation of the lari. 

According to him, the bank prioritized rebuilding foreign exchange reserves rather than allowing the currency to strengthen further and curb rising prices.

Gotsiridze argued that selling even a small portion of the previously purchased foreign currency could help prevent the lari’s depreciation.

“Foreign currency is bought in order to be sold when necessary. The National Bank is late,” he said.

He added that such intervention would be particularly important at a time when geopolitical developments and possible economic factors - including a potential increase in global oil prices - could create uncertainty among the public and businesses.