Georgian Lari (GEL)
The Georgian Lari was introduced in October 1995, replacing the temporary coupon currency after the Soviet collapse. Issued by the National Bank of Georgia, it floats freely and serves a growing tourism and remittance economy.
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A short history of the Georgian Lari
After the Soviet collapse, Georgia passed through the Russian ruble and then a temporary coupon currency, enduring severe inflation along the way. The lari arrived on 2 October 1995, replacing the coupons at one million to one and giving the young state a currency with deep historical echoes: lari is an old Georgian term for money and property, and the subunit, the tetri, borrows its name from a medieval silver coin.
The lari is a floating currency. The National Bank of Georgia smooths volatility rather than fixing a level, a regime that has been tested repeatedly — by the 2008 war with Russia, by the emerging-market selloff of 2014–2015 that knocked the lari down hard, and by the pandemic's tourism shutdown. Dollarization, a legacy of the turbulent 1990s, remains high: many Georgian savings and loans are still denominated in dollars.
The post-2020 years brought a remarkable swing. Tourism recovered, and after February 2022 Georgia absorbed large inflows of people, companies and money transfers from the region, helping the lari stage one of its strongest runs in years before the central bank eased it back.
What moves the GEL exchange rate
The lari is a small, open, service-driven economy's currency, so flows matter as much as fundamentals.
- Tourism: visitors to Tbilisi, the Black Sea coast, the mountains and the wine country are a major source of foreign currency, highly seasonal
- Remittances and inflows: transfers from Georgians abroad — and the waves of money that arrived after 2022 — can move the currency materially
- Trade balances: Georgia imports far more than it exports, buying from Turkey, the EU and its neighbors while selling wine, nuts and re-exported cars
- National Bank policy: interventions and the policy rate defend the lari, while the dollarization of local lending makes stability a policy priority
The Georgian Lari in practice
Georgia is one of the easier Caucasus countries for cashless travel: contactless cards work almost everywhere in Tbilisi and Batumi, from metro rides to mountain guesthouses, though cash still helps in villages and markets. ATMs are reliable, and the country's money-transfer culture — storefront operators handling cross-border remittances — is among the densest anywhere.
The lari is not meaningfully convertible abroad: change money on arrival and convert the rest before departure. For remittances, the big corridors run to and from Russia, the EU, Turkey, Israel and the United States, and competition between banks and transfer operators keeps margins reasonable — still, compare the lari amount received. For businesses, the dollarization of rents and loans means a weakening lari quietly inflates dollar-linked costs, which is why locals watch USD/GEL as closely as any macro indicator.
Popular Georgian Lari conversions
USD/GEL is the reference pair for savings, loans and remittances. EUR/GEL matters for EU trade and European visitors, while TRY/GEL is a busy pair thanks to Turkish trade and tourism, and RUB/GEL tracks the heavy regional traffic with Russia. GBP/GEL serves the growing UK travel and investment connection.
Frequently asked questions
What did Georgia use before the lari?
After independence Georgia used the Russian ruble, then issued a temporary coupon currency from 1993 amid high inflation. The lari replaced the coupons in October 1995 at one million coupons per lari.
Is the Georgian lari pegged to anything?
No. The lari floats, and the National Bank of Georgia intervenes only to smooth excessive volatility. The US dollar still looms large because many Georgian loans and savings are dollarized.
Is Georgia a cash or card country?
Both, comfortably. Cards and contactless payments are accepted almost everywhere in cities and tourist areas; carry lari cash for villages, markets and older taxis.
Page updated: 2026-11-01