“In 1995, before the introduction of the lari, the Ministry of Finance played a major role in establishing the economic foundations. We managed to mobilize 20% of GDP into the budget and monetize all humanitarian aid, which helped stabilize the coupon,” said David Iakobidze, Georgia’s Minister of Finance from 1993 to 1997, who was actively involved in launching the country’s first national currency.
According to Iakobidze, Georgia implemented a unique monetary reform in 1995, introducing the national currency—the Georgian lari. Just a week later, on October 2, the lari became the sole legal tender throughout the country.
“The mother of the lari is the Georgian economy. The father of the lari is the international monetary system,” he remarked.
“When the national currency was launched, one US dollar was equivalent to 1.3 lari. Soon after, the lari strengthened. Then-President of the National Bank, Nodar Javakhishvili, managed to bring the rate down to 1.2, which was a signal that we could put more lari into circulation.”
He emphasized that the 1995 currency reform was successful because it was executed with great care and professionalism.
For reference, the first lari banknotes bore the signature of National Bank President Nodar Javakhishvili.
