2 Tetri – Georgia

In 1993, the Republic of Georgia was engulfed in a profound economic and political crisis following its independence from the Soviet Union. The collapse of the Soviet ruble zone, combined with a devastating civil war and the loss of traditional export markets, led to hyperinflation and a catastrophic breakdown in production and state finances. The government, led by President Eduard Shevardnadze, resorted to printing massive amounts of temporary coupon currency, the kuponi, to cover budget deficits and pay for imports, but this only accelerated the currency's devaluation. By mid-1993, the kuponi had become virtually worthless, with inflation reaching a staggering monthly rate of over 60% and citizens needing sacks of banknotes for basic purchases.

The currency chaos was exacerbated by Georgia's continued, though unstable, participation in the Russian ruble zone. In an attempt to stabilize the situation, Georgia briefly reintroduced the pre-1991 Soviet ruble in August 1993 under pressure from Russia. However, this move backfired almost immediately when Russia itself carried out a sudden monetary reform, withdrawing pre-1993 ruble notes from circulation. This left Georgia with a huge quantity of now-useless cash, wiping out savings overnight and plunging the economy into deeper turmoil. The event starkly highlighted Georgia's extreme vulnerability and economic dependence on Russia at the time.

This period of hyperinflation and monetary collapse reached its climax in late 1993. Recognizing the complete failure of the kuponi and the disastrous ruble experiment, the Georgian government took decisive action. On October 2, 1993, it officially introduced a new national currency, the Georgian lari (GEL), to replace the kuponi at a rate of 1 lari = 1,000,000 kuponi. Backed by strict monetary policies and supported by critical international aid, the lari's introduction marked the painful but necessary first step toward macroeconomic stabilization, ending the hyperinflationary spiral and laying the foundation for a separate monetary system.