The Georgia Lari (GEL) is the official currency of the country of Georgia, which lies at the crossroads of Eastern Europe and Western Asia. 

Knowing this currency gives insight into how Georgia’s economy functions and how people handle daily transactions. 

You may be planning a trip to Georgia or simply learning about global currencies, knowing about the Lari can help you better understand the region.

What is Georgia Lari (GEL)?

The Georgia Lari (GEL) is the currency that people in Georgia use for all kinds of purchases. Whether they are buying groceries, paying bills, or traveling within the country, they use the Lari to conduct these transactions. 

The word “Lari” itself comes from an old Georgian word meaning “hoard” or “property,” showing how valuable it is in everyday life.

Just like how other countries have their currencies, such as the US Dollar or the Euro, Georgia uses the Lari. 

The symbol for the Lari is ₾, and it’s abbreviated as GEL in currency markets and exchanges.

History

The Georgia Lari (GEL) came into use in 1995, but Georgia’s history with currency goes much further back. 

Before the Lari, Georgia used the Georgian Coupon, a temporary currency introduced after the country gained independence from the Soviet Union in 1991. 

The Coupon, however, suffered from massive inflation, making everyday goods very expensive.

To fix this, the Georgian government introduced the Lari in 1995, and it quickly became the stable currency that Georgians still use today. 

This change allowed the country to regain control over its economy and provide a reliable way for people to manage their money.

The National Bank of Georgia is responsible for managing the Lari. They oversee the printing of banknotes, minting of coins, and control over the currency’s value to keep the economy running smoothly.

Exchange Rate System

The Georgia Lari (GEL) follows a floating exchange rate system. This means that the value of the Lari changes according to the foreign exchange market. 

The value of the Lari goes up or down based on how the market values it against other currencies like the US Dollar (USD), Euro (EUR), or the Russian Ruble (RUB).

To give you an idea of its value, here’s how 100 Georgian Lari compares to other currencies:

• 100 GEL = 36.5 USD (United States Dollar)
• 100 GEL = 33.5 EUR (Euro)
• 100 GEL = 60,001.18 NGN (Nigerian Naira)
• 100 GEL = 3538 RUB (Russian Ruble)
• 100 GEL = 28 GBP (British Pound Sterling)

These exchange rates change daily, depending on global financial trends. People use these rates when exchanging their money for Lari or vice versa. 

For example, if you travel to Georgia, you can exchange your country’s currency for Lari at these rates.

Subdivisions and Denominations

Like most currencies, the Georgia Lari has smaller units to make everyday transactions easier. One Lari is divided into 100 smaller units called tetri. 

This subdivision allows people to buy small, everyday items like a cup of coffee or a snack.

The Georgia Lari (GEL) is divided into 100 smaller units called tetri to simplify everyday transactions. 

Coins in the Lari system come in denominations of 1, 2, 5, 10, 20, and 50 tetri, as well as 1 and 2 Lari. 

These coins are practical for smaller purchases, like a bottle of water or a snack. For larger purchases, banknotes are used, which come in denominations of 5, 10, 20, 50, 100, and 200 Lari. 

These banknotes often feature important historical figures and landmarks from Georgia, reflecting the country’s rich heritage. 

Banknotes are typically used for more substantial transactions, such as paying for groceries or dining out.

Economy and Challenges

Georgia’s economy has grown steadily over the years, and the Georgia Lari (GEL) plays a central role in that growth. 

The country’s economy depends on several sectors, including agriculture, tourism, wine production, and transportation. 

Georgia is famous for its natural beauty and ancient winemaking traditions, attracting tourists worldwide.

Georgia faces challenges as well. Its economy is relatively small, and it relies heavily on trade with other countries. 

Changes in the global economy can impact the value of the Lari. For example, fluctuations in the prices of goods like oil or gas can affect Georgia’s trade and, therefore, the value of its currency.

The National Bank of Georgia works to maintain stability in the economy by managing inflation and ensuring that the Lari stays strong. 

The bank uses tools like interest rates and currency reserves to protect the Lari from sudden economic shocks. 

These efforts help keep prices stable and make sure that the people of Georgia can continue to trust their currency.

Conclusion

The Georgia Lari (GEL) is much more than just money. It represents Georgia’s independence and its growing role in the world economy. 

Knowing the Lari helps people appreciate how the country’s economy functions and how Georgia stays connected to the rest of the world. 

You may visit Georgia or just learn about global currencies, knowing about the Lari gives you a deeper understanding of this fascinating country and its financial system.