You're standing at a small currency booth on Rustaveli Avenue in Tbilisi. The neon signs are flickering. You check your phone, seeing the mid-market rate for 1 USD to GEL, but the board in front of you tells a different story. It always does.
Converting dollars to Georgian Lari isn't just a math problem. It's a snapshot of a country caught between massive tourism booms, regional geopolitical tension, and a central bank that’s trying to keep everything from boiling over. Honestly, if you're looking at the Lari today, you're looking at one of the most resilient, yet frustratingly volatile, currencies in the Caucasus.
Understanding the 1 USD to GEL Rollercoaster
The Lari has been through a lot. Since its introduction in 1995, replacing the hyper-inflated coupon, it has become a symbol of Georgian sovereignty. But it’s a "small" currency. That means even a minor shift in global markets—like the US Federal Reserve hiking rates or a sudden influx of digital nomads—can send the Lari into a tailspin or a sudden surge.
Lately, the exchange rate has been hovering in a range that makes Georgia relatively affordable for Americans, but significantly more expensive than it was in 2021. Back then, the Lari was much weaker. Today, the National Bank of Georgia (NBG) maintains a floating exchange rate, meaning they generally let the market decide what 1 USD to GEL is worth. They only step in when things get "messy."
If you see the NBG selling millions of dollars from their reserves, it’s usually because the Lari is dropping too fast and they want to prevent a panic.
The "Migration Effect" and Your Wallet
We have to talk about the elephant in the room: the massive influx of people and capital into Georgia over the last few years. When thousands of people move to Tbilisi and Batumi, they bring foreign capital. They need Lari to pay rent, buy Khachapuri, and ride the metro.
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This demand for the local currency actually strengthened the Lari.
While most of the world saw their currencies crumble against a "Strong Dollar" in 2022 and 2023, the Georgian Lari held its ground remarkably well. It was a weird paradox. You had high inflation locally, but a currency that was getting stronger. For someone holding US Dollars, this was a double-edged sword. You got fewer Lari for your dollar, and those Lari bought fewer goods because prices in stores were climbing.
Where to Actually Swap Your Dollars
Forget the airport. Seriously. Whether you are at Tbilisi International or Batumi, the spread—the difference between the buy and sell price—is predatory. You might lose 5% to 10% of your value just by walking off the plane and hitting the first kiosk you see.
In the city centers, you’ll find small, independent exchange booths. They are everywhere. Look for the ones with the tightest spreads. Usually, if the difference between the "Buy" and "Sell" price is only 0.01 or 0.02 Lari, you're getting a fair deal.
- Tbilisi: The booths near the Marjanishvili metro or further down Kostava Street often have better rates than the tourist traps in Old Town.
- Banks: TBC and Bank of Georgia are the big players. Their mobile apps are incredible, but their physical branch rates for cash are often slightly worse than the "hole-in-the-wall" booths.
- ATM Withdrawals: This is often the smartest move if you have a card like Charles Schwab or Revolut that waives foreign transaction fees. The ATM will ask if you want it to do the conversion for you. Say no. Always choose "Decline Conversion" and let your home bank handle the math. This one trick usually saves you about 3% on every withdrawal.
Seasonal Swings in the Lari
Georgia is a tourist country. In the summer, the mountain treks are open and the Black Sea coast is packed. Demand for the Lari peaks in July and August. Usually, you’ll see 1 USD to GEL give you a bit less during these months because everyone wants Lari.
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In the winter, unless it’s the New Year’s rush, the Lari can soften. It's subtle, but if you're moving a large amount of money—say, to buy property in Vake or Saburtalo—timing your transfer to these seasonal ebbs can save you thousands of dollars.
Why the Rate Matters for the Average Traveler
If the rate is 2.70 GEL to 1 USD, a 15 Lari lunch costs you about $5.55. If it slips to 3.00, that same lunch is suddenly $5.00.
It sounds small. But over a two-week trip involving hotels, wine tours in Kakheti, and private drivers to Kazbegi, those decimals add up. Georgia is no longer the "dirt cheap" destination it was ten years ago. Real estate prices in Tbilisi have skyrocketed, and the strengthening Lari has played a major role in that.
The NBG keeps a close eye on "Dollarization." Many Georgians still think in dollars when it comes to big purchases like cars or apartments. The government hates this. They want people to trust the Lari. So, they’ve made it harder to take out loans in USD if you earn in GEL. This policy keeps the currency's value more stable because there isn't a constant, desperate scramble for dollars to pay off debt.
Technical Factors Influencing 1 USD to GEL in 2026
The National Bank of Georgia uses a sophisticated "inflation targeting" framework. They don't target a specific exchange rate for 1 USD to GEL, but they do target an inflation rate (usually around 3%). If inflation gets too high, they raise interest rates.
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Higher interest rates in Georgia attract "carry traders"—investors who borrow money where interest is low (like the US or Europe) and park it in Georgian Lari assets to earn higher returns. This pushes the Lari's value up.
However, Georgia’s trade balance is a perennial issue. The country imports a lot—cars, fuel, medicine. To pay for these, Georgia has to sell Lari and buy Dollars. This puts constant downward pressure on the Lari. The only things balancing the scale are tourism, remittances from Georgians working abroad, and foreign direct investment. If any of those three pillars wobble, the exchange rate reacts instantly.
Real-World Example: The 2024 Political Fluctuations
Back in mid-2024, during the protests regarding the "Foreign Agents" law, the Lari saw significant volatility. Investors got nervous. When investors get nervous, they dump the Lari. During that period, we saw the NBG intervene several times to prevent a freefall.
It’s a reminder that the rate of 1 USD to GEL isn't just about economic output; it's about perception. If the world thinks Georgia is stable, the Lari thrives. If there's a whiff of instability, the dollar becomes the safe haven everyone runs to.
Actionable Tips for Handling Your Money in Georgia
Don't just watch the ticker. If you're coming to Georgia or doing business here, you need a strategy so you don't get hosed by the "hidden" costs of currency exchange.
- Use Digital Banks for Daily Spending: Apps like Apple Pay and Google Pay are accepted almost everywhere in cities—even in some small corner shops. Your digital bank will usually give you a rate very close to the official mid-market rate for 1 USD to GEL.
- Keep "Emergency Dollars": While you should pay in Lari (it's the law for most transactions), many guesthouse owners in the mountains or private guides still appreciate—and sometimes prefer—crisp, high-denomination US Dollar bills. Just make sure they are pristine. A tiny tear in a $20 bill can make it unexchangeable in Georgia.
- Check the NBG Official Rate: Every day around 5:00 PM, the National Bank of Georgia publishes the official rate for the next day. Use this as your North Star. If a booth is offering you something significantly lower than this, walk away.
- Avoid Weekend Exchanges: Global markets are closed on weekends. Exchange booths often "pad" their rates on Saturdays and Sundays to protect themselves against any sudden market openings on Monday. If you can, swap your money on a Tuesday or Wednesday.
- Watch the Oil Prices: Georgia isn't an oil producer. When global oil prices go up, Georgia has to spend more USD to import fuel. This usually leads to a weaker Lari. It sounds disconnected, but the price at a gas station in Texas can actually influence what you pay for a Khinkali in Tbilisi.
The Georgian Lari is a fascinating, gritty currency. It reflects a nation that is punching above its weight class economically. By keeping an eye on the 1 USD to GEL rate and understanding the "why" behind the numbers, you can navigate the Georgian economy like a local. Just remember: in Georgia, the best deals aren't found on a screen, but in a small booth on a side street, tucked away from the tourists.