Georgia's lari depreciates against main trading currencies

Finance Materials 29 May 2021 14:13
Baku, Azerbaijan Trend News Agency Tamilla Mammadova
Georgia's lari depreciates against main trading currencies

The Georgian lari real exchange rate depreciated in March by yearly and appreciated by monthly terms against all main trading currencies, Trend reports via the ISET-PI, a think-tank based at the International School of Economics of Tbilisi State University.

The Real Effective Exchange Rate (REER) appreciated by 4.5 percent relative to the previous months, and depreciated by 5.8 percent relative to the same month of the previous year.

Notably, the lari real exchange rate depreciated with respect to the Euro, the USD and Russian Ruble by 10.5 percent, 4.5 percent and 6.8 percent respectively in yearly terms, but appreciated with respect to Turkish Lira by 1.2 percent.

REER appreciated with respect to major partner currencies in monthly terms by 2.6 percent against USD; 9.9 percent against Turkish Lira; 2.8 percent against Russian ruble; 4 percent against the Euro.

Depreciation of the REER is typically associated with domestic export goods gaining competitiveness on the foreign markets, but it also translates into increased prices on imported goods.

Overall, REER-related variables had a small positive contribution to the real GDP growth projections.