Georgia’s lari strikes record low against dollar

PanARMENIAN.Net - The Georgian central bank sold $20 million as the national currency, lari, hit a record low against U.S. dollar on Friday, January 22, Civil Georgia reports.

GEL fell 1% over the previous day to 2.4694 per U.S. dollar.

The Georgian national currency has lost 3% of its value against dollar since the beginning of this year and 26.4% since January, 2015.

GEL started depreciation in November, 2014 falling by about 40% against dollar since then.

Depreciation of lari is increasing debt burden of borrowers with U.S. dollar loans. About 64% of total loans in Georgia are denominated in foreign currency, mostly in U.S. dollar.

GEL’s previous all-time low of 2.451 per U.S. dollar was recorded in February, 1999.

Central bank’s January 22 intervention was the second one this year and the third one in almost a month with $20 million sold each time aimed at dampening excess exchange rate volatility.

Central bank made total of nine interventions last year with total sales reaching $286.96 million.