The preliminary annual exchange rate for 1999 was 11.0 percent and the real figure was 10.9 percent. The official exchange rates in Georgia are set by the National Bank of Georgia. In accordance with the Georgian legislation US dollars and other major currencies are not acceptable as a medium or exchange at retail and financial institutions. The Georgian Lari is the only currency allowed in business transactions. Foreign investors may convert or transfer into hard currency any amount of funds associated with an investment.
Foreign investors have the right to hold foreign currency accounts with authorized local banks.
The Lari is traded on the Tbilisi Interbank Currency Exchange, as well as the Foreign Exchange Bureau Market. The former is a wholesale market for foreign exchange between banks, the later handles large volumes of small retail transactions. Any amount of Lari generated by foreign investors can be sold for hard currency through these markets at a legal market-clearing rate or can be converted in banks that have a hard currency operation license.