Bank of Georgia Growth and Reform Strategy
35%
30%
25%
20%
15%
10%
5%
0%
-5%
Jan-14
Apr-14
Jul-14
Nov-14
Feb-15
Jun-15
Sep-15
Dec-15
Apr-16
Jul-16
Nov-16
BANK OF GEORGIA
-M2, % change, y/y (LHS)
Source: NBG
130
5.0
1.42
1.6
1.36
1.30
1.31
1.25
1.23 1.24
1.29
1.4
1.16
4.0
1.03
1.2
1.0
3.0
3.3
3.5
3.0
0.8
2.8
2.9 2.8
2.7
2.8
28
120
110
100
2.0
2.5
0.6
2.3
0.4
0.0
00
90
1.0
90
0.2
80
0.0
Feb-17
Jun-17
FLOATING EXCHANGE RATE - POLICY PRIORITY
FX reserves
Nominal and Real effective exchange rate
(Jan2014-100)
Official FX reserves, US$ bn
--M2 multiplier
M2 and annual inflation
Sep-17
Dec-17
Apr-18
Jul-18
Nov-18
Feb-19
Annual inflation, eop (RHS)
2018
2019
Source: NBG
8%
35%
7%
30%
6%
25%
5%
20%
4%
15%
3%
2%
10%
1%
5%
0%
0%
-1%
-5%
May-19
Sep-19
Dec-19
appreciation
Jan-14
Apr-14
Jul-14
Nov-14
Feb-15
Jun-15
Sep-15
Dec-15
M2, % change, y/y (LHS)
Apr-16
Jul-16
Nov-16
Jan-14
Apr-14
Jul-14
Nov-14
Feb-15
Jun-15
Sep-15
Dec-15
Nominal effective exchange rate
Feb-17
Jun-17
Sep-17
Dec-17
Apr-18
Apr-16
Jul-16
Nov-16
Feb-17
Jun-17
Sep-17
Dec-17
Apr-18
Jul-18
Nov-18
Feb-19
M2 and USD/GEL
Real effective exchange rate
Source: NBG
40%
depreciation
30%
20%
10%
0%
Jul-18
Nov-18
Feb-19
May-19
GEL/USD, % change (RHS)
Sep-19
Dec-19
53
53
-10%
Source: NBG
130
120
-7.9% y/y
110
-5.3% y/y
100
May-19
Sep-19
Dec-19
80
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