The Georgian Lari (GEL) is Georgia’s national currency, playing a vital role in the country’s economic stability and daily life. Whether you’re someone looking to visit Georgia, conduct business, or send money to loved ones back home, understanding the Lari is essential for navigating the financial landscape effectively.
This post provides an in-depth look at what the Georgian Lari is, its history, current usage, and practical tips for those dealing with the currency.
What Is the Georgian Lari?
The Georgian Lari, abbreviated as GEL, is the official currency of the Republic of Georgia. Introduced in 1995, the Lari consists of 100 tetri, which function as the subunit. Banknotes range from 1 to 200 Lari, while coins are available in tetri denominations of 1, 2, 5, 10, 20, and 50, along with 1 Lari coins.
The currency is widely recognized for its modern design that features elements of Georgian culture, monuments, and historical figures like Shota Rustaveli, a revered poet.
A Brief History of the Georgian Lari
Understanding the historical background of the Georgian Lari helps provide context for its significance today:
Before the Lari
Georgia initially used the Russian ruble during Soviet rule, followed by the Georgian Kuponi after gaining independence in 1991. The transition to the Lari in 1995 marked a significant step toward economic stability.
The Importance of the Lari’s Introduction
The Lari was introduced to replace the inflation-prone Kuponi. With the introduction of the Lari, Georgia established a stronger monetary framework that helped stabilize the country’s economy and rebuild trust in its financial system.
Economic Stabilization Efforts
With the National Bank of Georgia (NBG) responsible for managing monetary policy, the Lari has improved Georgia’s ability to handle inflation, attract foreign investments, and streamline international trade.
Why Understanding the Lari Matters
For anyone living in, visiting, or sending money to Georgia, understanding the Georgian Lari goes beyond simple currency exchange. Here’s why:
1. Daily Transactions
The Lari is the sole legal tender for transactions in Georgia. Familiarity with the notes and coins ensures smooth daily purchases and budgeting.
2. Money Transfers to Georgia
For millions of expatriates supporting loved ones back home, knowing the value of the Lari helps ensure their hard-earned money translates to effective support. Remittance services often provide live exchange rates, so staying informed means getting the most out of every transaction.
3. Tourism and Commerce
If you’re planning a trip to experience Georgia’s breathtaking mountain scenery or vibrant street markets, understanding Lari denominations, average costs, and tipping practices ensures a hassle-free experience.
4. Business and Trade
Entrepreneurs and businesses trading with Georgia must remain capable of navigating payment systems in GEL. The currency is critical for compliance and seamless operations.
The Value of the Georgian Lari Today
The Lari’s value fluctuates based on various economic factors such as inflation, exports, and global exchange rates. It is pegged to foreign currencies like the U.S. Dollar (USD) or the Euro (EUR) for purpose of trade and remittance. Staying updated with the latest Lari rates is essential, whether you’re an expat, traveler, or business owner.
You can check the latest exchange rate through reliable sources such as:
- The National Bank of Georgia (NBG) website
- Currency exchange platforms like Remitly or XE
Tips for Using the Georgian Lari
Whether you’re managing finances in Georgia or sending money to the country, these tips can help simplify your relationship with the Lari:
1. Understand the Exchange Rate
Before exchanging your money, learn the current rates to ensure you’re getting a fair deal. Use reputable financial institutions or money transfer services that provide transparent fees.
2. Use Money Transfer Services for Convenience
Platforms like Remitly allow you to send money to Georgia securely and easily. They often provide competitive exchange rates and low fees compared to traditional banks.
3. Pay Most Transactions in Cash
While credit and debit cards are accepted in urban centers, cash is still king in many rural or remote areas. Carry small denominations of Lari for easy transactions.
4. Be Aware of ATM Fees
When withdrawing money in Georgia, some ATMs may charge additional fees for foreign cards. Check with your bank for information on partner ATMs or waived fees.
5. Recognize Counterfeit Risks
Though uncommon, counterfeit Lari may circulate. Familiarize yourself with security features on banknotes to ensure authenticity, such as watermarks, security threads, and color-changing ink.
Fun Facts About the Georgian Lari
Want to impress your friends or colleagues? Here are a few fun tidbits about Georgia’s national currency:
- The word “Lari” originates from an old Georgian term meaning “treasure” or “property.”
- Georgian coins, called tetri, take their name from a monetary unit used during the time of the ancient Georgian Kingdom.
- The Lari banknotes feature notable Georgian figures, such as Queen Tamar and poet Akaki Tsereteli, showcasing Georgia’s rich cultural and historical legacy.
Why the Georgian Lari Is a Currency to Watch
The Georgian Lari isn’t just an indicator of economic stability; it’s a symbol of national pride and progress. Georgia’s growing focus on tourism, technology, and trade has put the Lari on the radar for international investors as well.
When transferring funds in or out of Georgia, it’s crucial to choose a platform that simplifies the process. Reliable services like Remitly make it easy to send money in Lari while offering low fees and peace of mind.
Take Control of Your Lari Transactions Today
The Georgian Lari is more than just currency; it connects people, supports businesses, and reflects a country’s legacy. Whether you’re a visitor, a local, or someone supporting loved ones back home, understanding how the Lari works ensures you’re making the most of your money.
Need to send money to Georgia? Sign up with Remitly today, and enjoy secure, fast, and transparent transactions!