UNM’s Gotsiridze accuses National Bank of Lari devaluation

The Georgian National Bank made a mistake when it bought dollars during the strengthening of the GEL rate and released a large amount of GEL into circulation, leading to the devaluation of the national currency, an MP of the United National Movement opposition party, former head of NBG, Roman Gotsiridze, told Front News on Thursday. 

He suggested that the NBG was unable “to resist the temptation, got greedy and bought 110 million dollars in July, then 70 million dollars in August, thereby releasing 500 million GEL into circulation, which instantly affected the exchange rate of the GEL and also contributed to the increase in prices”. 

“When the main goal of the National Bank is the stability of the GEL, if you increase the money supply by 500 million, you prioritize the increase of reserves and not the decrease of inflation, this means that the National Bank does not act to achieve the goals limited by law, but to achieve an incorrectly set priority,” Gotsiridze said. 

After the strengthening process started in the summer, the Georgian national currency began to depreciate at a rapid pace at the end of August.