Euro problems

The euro is falling against the USD. Eurozone countries Greece, Spain, Portugal and Italy are having problems. The European currency may not do well for some time to come.

Georgian analysts have different opinions on how the euro to GEL rate will be affected by the problems in Europe. Most suggest that the GEL is pegged against the USD so euro fluctuations will not influence it. Others however say that the falling euro will result in a decrease of investment from European countries which will prevent the banks issuing long term loans. Georgian exports to European countries will also decrease and this might also indirectly influence the fate of Georgian labour migrants to European countries.