The main way to achieve dedollarisation is to trust the national currency. The high level of dollarization is a major challenge for countries with transitioning economies. The degree of volatility and the impact of external fluctuations on the economy is high, causing the local currency to lose trust while the propensity to foreign currency increases. To fight with this problem, the Government of Georgia has introduced a 10-point larisation plan. At first GEL 100 thousand and from 2019, GEL 200 000 loans will be issued only in national currency.
The National Bank of Georgia thinks that there is no link between the growth of money supply and the depreciation of GEL, which is due to the developed financial sector.
Bela Gelashvili
News Author