Macroeconomics · Interview · 6 min · 27.09.2026 09:15
The lari exchange rate and reserves, in one story
Reserves are a cushion. They do not erase every daily move, but they soften a large shock.
The exchange rate is the price at which the lari is traded for another currency. Demand and supply set it: exports, remittances, tourism, imports, and debt.
Reserves let a country sell or buy foreign currency when the move is sharp. That does not pin the rate to one point forever.
When reserves rise, foreign currency often came in faster than it went out. By itself that is neither good news nor bad news — it needs context.
