Statement Of National Bank Of Georgia
20 December, 2016
The reasons for the recent
depreciation of the exchange rate are the combination of fundamental factors
(global appreciation of Dollar, depreciation
of Turkish Lira) and expectations. Despite the fundamental factors, according
to our assessment the current exchange rate depreciated by more than what the
rational expectations would suggest.
In accordance with
announced strategy, the National Bank will use all means and instruments at its
disposal in order to limit excessive fluctuations on foreign exchange market
and keep the lari exchange rate in line with fundamental factors.
In case of risks to price stability in the medium term the National Bank will tighten the monetary policy. The National Bank has the appropriate power and instruments in order to avoid a high inflation. The low inflation ensures the long-term stability of exchange rate and sustainable growth of the economy.
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