OPEX Ratio Alignment & Portfolio Valuation Overview
80
00
Jan-21
90
90
100
110
120
Feb-17
May-17
Aug-17
Nov-17
Feb-18
May-18
Aug-18
Nov-18
Feb-19
-
GEORGIAN LARI – APPRECIATING SINCE MID-2021
APPRECIATING SINCE MID-2021, BRIEFLY INTERRUPTED AFTER THE RUSSIAN INVASION OF
UKRAINE, GEL HAS NOW STRENGTHENED CLOSE TO PRE-PANDEMIC LEVELS AGAINST USD
Sources: NBG
3.7
3.5
3.3
3.1
2.9
2.7
2.5
2.3
ã‚“
May-19
Aug-19
Nov-19
GEL HAS APPRECIATED AGAINST USD, DESPITE USD STRENGTHENING GLOBALLY
Sources: NBG, Bloomberg
130
-
DXY - USD/Trading Partner Basket (Jan 2021=100)
USD/GEL (Jan 2021=100)
Georgia Capital PLC | Source: NBG. Bloomberg
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Feb-20
May-20
Aug-20
Nov-20
Feb-21
May-21
Aug-21
Nov-21
Feb-22
May-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
82.9
117.4
Aug-22
GEORGIA
CAPITAL
2.71
GEL APPRECIATION DRIVERS
Record high remittance inflows, increasing by 65% y-o-y in 1H22;
Continued robust performance in merchandise exports, growing by
35% y-o-y in 1H22;
Tourism revenues rebounding to 79% of 2019 level in 1H22
(including 96% in May and 89% in June), 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 June 2022), supporting stronger GEL and
curbing negative expectations;
Rebounding economic activity and significant interest rate
differential aiding accelerated lending in foreign currency, as FX
loans have been steadily increasing since April 2021, both in retail
and business sectors.
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