YEREVAN. – As a result of the devaluation of the Georgian national currency, the lari, the sales of Georgian goods will increase, and Armenian products will be gradually driven out. Economist Suren Parsyan told this to Armenian News-NEWS.am, when asked what impact the current depreciation of the lari may have on the commodity turnover of Armenia and Georgia. 

The economist recalled that the lari has depreciated sharply several times over the past five years, and due to both internal and external factors. In his words, the devaluation of the Georgian lari will contribute to an increase in the prices of goods that are imported to Georgia, but Georgian exporters will gain favorable position.

“The depreciation of the lari gives a number of advantages to the products exported from Georgia; in particular, they become cheaper in export markets,” he explained. “For example, Georgian products became more competitive in the CIS expanse, [their] prices became lower than Armenian products. As a result, the sales volume of Georgian products will increase and gradually drive out Armenian products.”

Parsyan noted that the depreciation of the lari will stimulate outbound tourism from Armenia. In particular, as per the economist, consumers from Armenia will prefer to vacation in Georgia by spending less money because they can make use of more services there for the same amount than in Armenia.

In Suren Parsyan’s view, in this situation, the Central Bank of Armenia should revise its monetary policy and allow the devaluation of the Armenian national currency, the dram, and this will increase the competitive advantages of Armenia’s products and services.