Problems with Georgian Lari

Independent economic analysts are expressing their concern about the current situation with Georgian currency, the Lari. In 2005-2007 there was a high confidence level among the population in GEL, today the situation has reversed. Most of the deposits in Georgian banks are kept in foreign currency, though the National Bank of Georgia keeps GEL stable today; it has not regained the confidence of the population. In fact, the banks also prefer to conduct their operations in Dollars or other foreign currency. Overall this is a negative trend for the country.