Georgian gold reserves drop to $2.5 billion

According to the Georgian National Bank, the gold reserves have recently dropped from $3.05 billion to $2.5 billion (18%). Gold mining has been dropping from year to year. Georgian gold reserves increased greatly after the five-day war of 2008. The IMF, World Bank, European Bank and different funds granted Georgia $4.5 billion, mostly in the form of grants and long-term low-interest loans, to fill reserves and strengthen the lari. Gold reserves have been dropping ever since.

Merab Liponava, an economist, told Vestnik Kavkaza that the loss of gold reserves was a strategic problem. The lari-to-dollar rate changed from 1.75 to 1.71 in the middle of the year with the help of tourists and rising exports of agricultural products and wine.

Liponava noted that if the National Bank was not buying currency, the dropping gold reserves would have been catastrophic. He believes that the country has to spend gold because of the weak economy and political instability.

The expert added that investments had been dropping for 20 years, the economy was weakening, the deficit growing, tax-collection was inefficient and GDP growth falling.

Liponava summarized that hundreds of thousands of small businessmen confident in the future and active on the market could boost economic growth and resolve macroeconomic problems.

According to the Georgian National Bank, the gold reserves has recently dropped from $3.05 billion to $2.5 billion (18%). Gold mining has been dropping from year to year. Georgian gold reserves increased greatly after the five-day war of 2008. The IMF, World Bank, European Bank and different funds granted Georgia $4.5 billion, mostly in the form of grants and long-term low-interest loans, to fill reserves and strengthen the lari. Gold reserves have been dropping ever since.Merab Liponava, an economist, told Vestnik Kavkaza that the loss of gold reserves was a strategic problem. The lari-to-dollar rate changed from 1.75 to 1.71 in the middle of the year with the help of tourists and rising exports of agricultural products and wine.Liponava noted that if the National Bank was not buying currency, the dropping gold reserves would have been catastrophic. He believes that the country has to spend gold because of weak economy and political instability.The expert added that investments had been dropping for 20 years, economy was weakening, deficit growing, taxes-collection was inefficient, GDP growth falling.Liponava summarized that hundreds of thousands of small businessmen confident in the future and active on the market can boost economic growth and resolve macroeconomic proble