The Georgian lari (symbol: ₾, code: GEL) has a rich history as the official currency of Georgia. Before the lari came into existence, various currencies influenced by the Persian, Byzantine, and Ottoman empires were used in the region during ancient to early modern times.
During the 19th to early 20th century, when Georgia was under Russian Empire control, the Russian ruble was the primary currency used. Following the Russian Revolution, the short-lived Transcaucasian Democratic Federative Republic, which included Georgia, issued its own currency known as the Transcaucasian ruble.
Throughout its time as part of the Soviet Union from, Georgia used the Soviet ruble as its currency. In 1922, the Georgian Soviet Socialist Republic (GSSR) issued denominations ranging from 5,000 to 5 million maneti. The term “maneti” was derived from the Latin word “moneta,” meaning coin, and was used as the Georgian name for the Soviet ruble. The Birth of the Lari and its Rise to Stability
With independence in 1991, Georgia needed a currency to call its own. The initial solution, the Georgian Coupon, was plagued by hyperinflation. This paved the way for the Lari’s introduction in 1995, replacing the coupon at a staggering rate of 1 million to 1. The Lari proved to be a game-changer, bringing much-needed stability to the Georgian economy and combating hyperinflation.
The Lari Today: A Symbol of Progress
The Lari is divided into 100 tetri and comes in both coin and banknote form, featuring prominent Georgian figures and national treasures. The design and security features have been continuously improved, with a significant upgrade in 2016. The Lari’s stability has fostered trade and investment, contributing to Georgia’s economic growth. The National Bank closely monitors inflation and implements monetary policies to maintain the currency’s strength.
Factors Shaping the Lari’s Future
Several factors influence the value of the Lari. Internal factors like Georgia’s economic health and the National Bank’s policies play a crucial role. Political stability and global market sentiment also have a bearing. Additionally, as Georgia is a major commodity exporter, fluctuations in commodity prices can impact the currency’s value.
A Look Ahead: Stability and Prosperity
The Lari serves as a symbol of Georgia’s economic independence and its journey towards a stable and prosperous future. The National Bank remains committed to maintaining price stability and supporting economic growth for the nation.
For further information please contact Ms. Irina Lopatina, Country Executive at our Eurofast office in Georgia, Tbilisi at tbilisi@eurofast.eu