President of the National Bank of Georgia discussed ongoing processes in the countrys economy and the currency exchange rate of Georgian Lari at the meeting with the Business Association of Georgia

10 Jan '14

On Friday, January 10, Business Association of Georgia hosted a meeting with the President of the National Bank. The meeting generated great interest on the part of the member companies of the Association, since this meeting allowed them to acquire   information directly from the President of the National Bank on reasons of current economic figures and the currency exchange rate fluctuation of the Georgian Lari; moreover, as it was an opportunity to raise issues of interest for them and receive respective answers. As pointed out in his opening remarks by the head of the Tax Committee of the Business Association of Georgia, "Today, it is particularly important for businesses to have a full information about the ongoing economic developments and trends to ensure that they build the right expectations and make respective decisions".
President of the National Bank presented the information to meeting participants about financing of the current accounts deficit, balance of payment and the monetary policy. 
Giorgi Kadagidze discussed in wider detail the fluctuating currency exchange rate of GEL. According to his statement, "We maintain a floating exchange rate, which means that the exchange rate is the so called automatic stabilizing force of economic processes. Over the last two years we had a deflation trend; therefore we had a softer monetary policy during this period. In addition, we experienced a budget deficit in the fourth quarter. All these, in conjunction with other factor, created a pressure on the currency exchange rate. If we see that these developments grow into inflation processes, we will start to stiffen the policy to ensure that inflation is a target close to the target mark".