The Georgian Lari (GEL) is the official currency of Georgia, a country located at the intersection of Eastern Europe and Western Asia.
The Georgian Lari was introduced in 1995, replacing the Georgian Kupon Lari at a rate of 1 Lari to 1,000,000 Kupon Laris.
The National Bank of Georgia is responsible for issuing and managing the Georgian Lari.
Exchange Rate System
The Georgian Lari operates under a floating exchange rate system, where its value relative to other currencies is determined by market forces, such as supply and demand.
The National Bank of Georgia may intervene in the foreign exchange market if necessary to maintain stability or prevent excessive fluctuations.
This system allows the Georgian Lari to respond to external shocks and changes in global market conditions while maintaining a certain level of stability.
Subdivisions and Denominations
The Georgian Lari is subdivided into 100 smaller units called tetri.
Coins are issued in denominations of 1, 2, 5, 10, 20, and 50 tetri, as well as 1 and 2 Lari coins.
Banknotes are available in denominations of 5, 10, 20, 50, 100, and 200 Laris.
Economy and Challenges
Georgia’s economy is diverse, with significant contributions from various sectors, including agriculture, tourism, manufacturing, and services.
The country has undergone significant economic reforms since gaining independence from the Soviet Union in 1991, leading to increased foreign investment and economic growth.
Georgia has focused on developing its tourism industry, attracting visitors with its rich cultural heritage, diverse landscapes, and warm hospitality.
However, Georgia faces several economic challenges, such as high levels of poverty and unemployment, a large informal sector, and vulnerability to external shocks.
The country is also affected by geopolitical tensions in the region, particularly in relation to the breakaway regions of Abkhazia and South Ossetia.
The Georgian government has been working on policies to promote economic growth, diversify the economy, and address social issues.
Summary
In summary, the Georgian Lari is the official currency of Georgia and is managed by the National Bank of Georgia.
The currency operates under a floating exchange rate system, with its value determined by market forces and potential intervention from the National Bank.
The Georgian Lari is subdivided into tetri and is issued in various banknote and coin denominations.
Georgia’s economy is diverse, with significant contributions from various sectors, but the country faces challenges related to high levels of poverty and unemployment, a large informal sector, and vulnerability to external shocks.