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Dollarisation of Georgia continues

By Messenger Staff
Monday, February 22
The dollarisation of Georgia’s economy is now visible. Any country should resist such a development, but economic rather than administrative measures should be taken to do this.

The Georgian people trust USD more than GEL. Of the total deposits in Georgian banks, worth around GEL 3.4 billion, more than 70% are in dollars, and this is an increasing trend.

Analysis by the banks shows that the people trust foreign currencies in general more than they do the lari. Distrust of the GEL is determined by the unpredictability of this currency. Since the Rose Revolution the Government has maintained a strong GEL rate but the latest tendency is for the GEL to fall, though insignificantly, which has scared many people.