Page 37 - GEORptSep22

7.0 FX
Georgia - Foreign exchange rate
2016
2017
2018
2019
2020
1Q21
2Q21
3Q21
4Q21
1Q22
Currency (units per EUR) (average)
2.617
2.832
2.991
3.155
3.552
3.998
4.008
3.680
3.576
3.493
Currency (units per USD) (average)
2.367
2.509
2.534
2.819
3.110
3.314
3.327
3.120
3.125
3.114
Georgian lari tumbles amid Russia’s invasion of Ukraine
Georgia's national currency depreciated against the US dollar amid Russia's invasion of Ukraine. According to the official data of the National Bank of Georgia, on 24 February the value of $1 was GEL3.1331, which represents a depreciation of 11.7 tetri compared to the previous day.
This was the fastest depreciation of the national currency since March 2020. The lari also depreciated by 8 tetri against the euro, and the value of one euro was GEL3.5031. Earlier in the winter, the lari was relatively strong against the US dollar and fluctuated in the range of 2.9-3 in February.
7.1 cryptocurrency
Georgia’s mountainous cryptocurrency problem
Georgia’s remote mountain region of Svaneti is best known for its towering, snowy peaks, picturesque stone-hewn hamlets, and strict traditional code of honour. Increasingly, however, it is also known for cryptocurrency production.
Some residents have been taking advantage of a government programme providing free electricity to mountain regions, with the aim of keeping the remote communities alive, and using the subsidised power to churn out virtual money in their mediaeval towers.
Georgia has emerged as an unlikely global cryptocurrency hotspot, with prospectors attracted to the country’s laissez-faire business environment and cheap electricity needed for the power-hungry process of “mining” the virtual money. Svaneti – with its free electricity for households and discounts for businesses – is an especially appealing base for the industry.
37 GEORGIA Country Report September 2022 www.intellinews.com