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Lari: flying into the abyss2010-06-12 23:06
The Georgian lari goes on cheapening. Since the beginning of summer, the national currency of Georgia has fallen by three percent. Despite this fact, Ministry of Finance of the republic is trying to calm down the people by saying that the lari rate fluctuation index cannot affect the price growth. The opposition has got its own view of the problem: according to the information provided by the Georgian Laborites, the ruling National Movement party has illegally spent over 300 million laris on the pre-election campaign and is now trying to reimburse the expenditure via bringing down the rate.
The rate of the Georgian national currency that has been falling down within several months has reached the lowest mark for the last five years at the beginning of June: 1,84 laris per USA dollar and 2,19 laris per euro. Lari has been especially going down in respect of dollar: in the period of June 1-5, lari has cheapened by 3,3 percent.
According to some media referring to the sources that are close to the government, the weakening of the Georgian national currency is attributed to the local elections held in Georgia on May 30, or, rather, to the money spent by the ruling National Party on these elections, which has increased their inflationary expectations and money supply.
The Georgian opposition has got its own view of the problem. The Laborite party has already accused the country's government and President Mikhail Saakashvili of bringing the national currency down artificially. As has been stated by one of the party leaders Paata Dzhibladze, the artificial decrease of the lari rate in respect of the US dollar, Saakashvili is trying to bring the money that was illegally spent by the ruling party during the elections back to the budget.
According to the Laborites, the ruling party has illegally spent over 300 million laris on the pre-election campaign and is now trying to reimburse these expenses by means of lowering the lari rate. Besides, Secretary General of the Laborites Soso Shatberashvili supposes that the lari rate will grow lower and will soon reach the point of 2,2 laris per 1 dollar, which will enable the government to replenish the budget by half a billion laris.