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Georgian, Armenian Currencies Continue To Drop

The Georgian currency, the lari, continued its decline in value to the U.S. dollar on December 5, reaching a new low of about two lari to one U.S. dollar.

Since December 1, the lari has lost 6.3 percent of its value to the U.S. dollar, hitting its lowest point to the greenback in some 10 years.

The president of the Georgia National Bank, Georgi Kadagidze, said the steep fall was due to "the frenzy of market players, which is generally characteristic of financial markets in such times."

He assured the National Bank had already proved its ability to cope with the situation during times "of much greater upheavals" and added there was no threat to Georgia's financial and macroeconomic stability.

The Armenian national currency, the dram, has also fallen from 435.26 to one U.S. dollar on December 1, to 447.86 on December 5.

With additional reporting by Interfax