The National Bank of Georgia (NBG) has reviewed the current situation in the foreign exchange market.

According to the NBG, the Georgian lari’s average exchange rate against the US dollar appreciated by 0.5% in June, compared to the previous month, strengthening from 2.7424 to 2.7288. Conversely, against the euro, it depreciated by 1.3%, weakening from 3.0976 to 3.1393.

At month’s end, the lari’s official exchange rate stood at 2.7236 against the US dollar and 3.1882 against the euro. During the reporting period, the GEL-USD exchange rate reached a maximum of 2.7334 and a minimum of 2.7236.

“In June, compared to the average rate, the minimum and maximum exchange rate values were equally deviated. In June, the Turkish lira experienced notable depreciation against the dollar on both a monthly and annual basis. Conversely, the Russian rouble and euro strengthened significantly. The Armenian dram and the Georgian lari also appreciated, while the Azerbaijani manat remained virtually unchanged.

The lari’s real effective exchange rate depreciated by 1.6% annually and 0.5% monthly. As for the nominal effective exchange rate index, it strengthened by 3.6% annually but weakened by 0.1% monthly. The effective rate’s depreciation has a positive impact on the country’s competitiveness.

According to the National Bank of Georgia’s report, in June, annual inflation in Georgia was lower than in Turkiye, Ukraine, Russia, Belarus, and Azerbaijan, but higher than in Armenia, the United States, and the eurozone. While a declining inflation trend is observed in some of Georgia’s key trading partner countries, overall price levels remain elevated.