The stable monetary stance, strict fiscal policy and increasing legalization of the economy in the recent period do a lot to improve confidence in the national currency. According to Vice-president Amaglobeli both geographic and economic areas of the circulation of lari have widened. During the last year, the national currency appreciated by almost 13%. This fact was mentioned in the Dengy journal, in the article ‘Polish-Georgian Alternative’, the author of which advises the population to make their savings in the Georgian Lari and the Polish Zloty. The dynamics of the exchange rate of lari shows that the appreciation of the national currency was not a temporary event. As a result of the positive processes in the economy the lari will make its position even stronger this year. Over the past period of 2005, the exchange rate of lari against the US dollar moved within a narrow range of 1.81-1.84. During the reporting period, the share of the NBG interventions in the foreign exchange market was much less than in the previous year. If needed, the Bank has sufficient foreign exchange reserves to use the appropriate instruments to avoid the severe fluctuations of the lari rate. As of May 25 of the current year, the volume of the international reserves of Georgia amounted to USD 453.8 million. From the beginning of the year, this indicator increased by more than USD 70 million. The Central Bank will continue to ensure the purchasing power of the national currency in the future, Vice-president said. This strong position of the national currency facilitates the wider use of lari transactions. The volume of the lari deposits has remained almost the same as at the beginning of 2005, the increase of the share of the term deposits is evident. The demand of the economy for lending in the national currency has increased, followed by the adequate response from the banking system. The loans in lari have doubled during 12 months. The functions of the national currency have also widened. Lari becomes more and more attractive for the population and legal entities in terms of making savings and deposits. Stability of the national currency, consistent macroeconomic policy and sustainable banking system will further increase the confidence in the banking system in the future. Accordingly, the lari denominated savings will become greater.