1Q23 Performance Overview
130
120
110
100
90
80
70
Jan-22
1.8
May-15
2.3
2.8
3.3
Series1
GEORGIAN LARI - NOW ABOVE PRE-PANDEMIC LEVELS
APPRECIATING SINCE MID-2021, BRIEFLY INTERRUPTED AFTER THE RUSSIAN INVASION OF
UKRAINE, GEL HAS NOW STRENGTHENED TO ABOVE PRE-PANDEMIC LEVELS AGAINST USD
3.8
Aug-15
Nov-15
Feb-16
May-16
Aug-16
Nov-16
Feb-17
May-17
Aug-17
Nov-17
Feb-18
May-18
Aug-18
Nov-18
Feb-19
May-19
Aug-19
3.46
where
2.77
GEL HAS APPRECIATED AGAINST USD, DESPITE USD STRENGTHENING GLOBALLY
DXY - USD/Trading Partner Basket (Jan 2022=100)
USD/GEL (Jan 2022=100)
Georgia Capital PLC | Source: NBG. Bloomberg
Jan-22
Mar-22
Apr-22
May-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Nov-19
Feb-20
May-20
Mar-23
Apr-23
Aug-20
Nov-20
Feb-21
May-21
Aug-21
Nov-21
Feb-22
May-22
Aug-22
Nov-22
Feb-23
3.40
GEORGIA
CAPITAL
May-23
105.8
80.9
2.50
GEL APPRECIATION DRIVERS
Record-high remittance inflows, surging by 130% y-o-y in
1Q23;
Continued robust performance in merchandise exports,
growing by 25% y-o-y in 1Q23;
Tourism revenues rebounding to 138% of 2019 level in 1Q23,
reflecting the global resumption of travel as well as the
migration effect;
Tight monetary policy (cumulative hike of 300 basis points
since March 2021 to 11% as of May 2023), supporting
stronger GEL and curbing negative expectations;
Ample FX liquidity in the banking sector, facilitating foreign
currency lending (FX liquidity coverage ratio at an average of
137.4% in 2022 and 136.4% in 1Q23);
Rebounding economic activity and significant interest rate
differential aiding accelerated lending in foreign currency, as
FX loan growth has remained resilient thus far despite rising
FX interest rates, averaging 12.2% in 2022 and 10.5% in 1Q23
(w/o the exchange rate effect).
May-23
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