New rate for GEL

Last Friday, November 7, the lari rate plunged against hard currencies, but Acting President of the NBG Davit Amaglobeli has promised that this new rate will be more or less stable. On November 7, 1 USD was worth GEL 1.65 and the rate will now be fixed at around this level.

Some Georgian economic analysts think that this kind of radical change was not accidental, being created deliberately by some officials to make themselves big and quick money. Lado Papava, the former MP and Economy Minister, has insisted that a special investigation be carried out. Former head of the NBG Nodar Javakhishvili considers this act a retaliation against the population for their protests against the ruling administration. Former Chair of Parliament Nino Burjanadze also thinks that politics and not economics was behind sudden devaluation of the GEL.

One thing is clear: such a sudden plunge in the national currency will discredit it and create a sense of instability in the whole population.