On 30 July, the commercial banks began selling one dollar for three GEL, with the prediction that the exchange rate would stop at the rate of 3,5 GEL for one US dollar.

A day later, the National Bank of Georgia  released a public statement regarding the situation. “According to the estimation of the National Bank of Georgia, despite the positive internal and foreign macroeconomic dynamics, the touristic shock and negative expectations spread in society caused the devaluation of the national currency. The latter might make for a dangerous circumstance – putting the stability of prices under some serious risk. Considering this, the National Bank of Georgia deems it necessary to put its instruments into use, so the materialization of this risk is avoided. To complete that goal, tomorrow, on August 1, the National Bank will sell 40 million US Dollars at an auction. If necessary, the National Bank of Georgia will continue to intervene in the following days. If the pressures of exchange rate have persevering effects on inflation, the National Bank will also toughen the monetary policy”, read the statement. 

The government officials also expressed their worries on the current Lari trends. “Every analysis shows that the fundamental factors are strong today, meaning the GEL’s depreciation is too strong,” said the Prime Minister Mamuka Bakhtadze. He noted that in May and June, Georgia received the highest tourism revenue in its history and there was an expectation to generate more revenue from the tourism sector in the economy, which could not be achieved due to recent developments in the country.

The representatives of the opposition, academia and the Georgian business sector also commented on the recent trends regarding the Lari.  “They should come out and explain in detail what is happening in the country. If the country’s economic team is the one to blame here, the Head of the National Bank should have enough guts to publicly admit that they are not fulfilling their responsibility and are working inadequately. Blaming political events for the economic detour of our country is, I think, absurd. The current situation is very bad for business and businessmen who create the economic atmosphere in our country. They will have an extraordinarily hard time continuing to operate with the value of today’s currency. At least if there is no existing action plan, the President of the National Bank must resign”, said the Chairman of the Georgian Distributors Business Association, Iva Chkonia.

The Vice President of the Center of International Researches and Forecasting, Nika Shengelia, deems that the economic team should be renewed and the National Bank should be reformed.

Zurab Japaridze from the Girchi Political Party blamed the current government’s chosen political course, their way of dealing with social problems, and their mentality for giving stimulus to the cause of the depreciation.

One of the leaders of European Georgia, Zurab Chiaberashvili also blamed the economic policy of the ruling Georgian Dream party, adding that for the long-term stability of the currency, the ruling party should be replaced.