Direction of Reform of Monetary, Credit, and Currency Policy in Georgia
This policy document describes the general principles of reforming Georgia's monetary system and the expected results of implementing these principles.
The document includes a historical review and analysis of Georgia's monetary and foreign exchange policy. It discusses the current policy of the monetary authority of Georgia and compares it with other countries. Countries with successful experience in terms of monetary policy reform are studied. For Georgia's policies, approaches, and economic environment to be as close as possible to the standards of the European Union, particular emphasis is placed on the member and non-member countries of the Eurozone, which use the euro as a legal means of payment. In addition, the examples of Panama and Ecuador, due to their successful monetary reforms, are discussed.
Through academic studies and the examples of the studied countries, it has been determined that linking the GEL to the euro will bring many positive results for Georgia: it will positively affect the well-being of the population, the fiscal discipline of the government and ensure the long-term and stable development of the country in an environment of low inflation and less currency risks. Fixing the GEL to the euro will help better integration with the economies of the EU countries.
The paper presents the necessary steps of proper reformation and their sequence to implement the reform efficiently.
Note: The full document is available only in Georgian.