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FINANCE MINISTER: EXCHANGE RATE HAS NO CONNECTION WITH REVENUE PART OF THE BUDGET

January 20, 2014

Sarke Daily News

Finance Minister Nodar Khaduri declared that currency "rate has no dependence with revenue part of the budget". Decline of national currency increases expenses of the government in part of foreign debt service, he pointed. There is no reason to panic, because National Bank of Georgia (NBG) has reserves, exceeding $3 billion , which had increased by $500 million last year, Khaduri told journalists today, while commenting on recent deflation of lari. At the same time, dollarization rate in Georgia is really high and increase of business activity caused temporary pressure (growth of demand) on the US dollar, he added. NBG has enough reserve for interventions in case of necessity, not only in case if inflation exceeds 6%, the Ministry assured and noted that NBG has already interfered in market activity, selling the US dollar in December and January. "Export, foreign remittances are increased as well as foreign investments", Khaduri pointed and added that "there are all grounds for change in currency rate will not be big".


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Source: Sarke Daily News (Georgia)


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