Investor Presentaiton
FLOATING EXCHANGE RATE - POLICY PRIORITY
Loans by currencies
Sources: NBG
In parallel with the rebound in economic activity, both GEL and FX loans have started to increase since
April, supporting GEL appreciation, with FX loan acceleration further aided by monetary tightening
FX Loans, y/y (w/o exchange rate effect)
GEL Loans, y/y
GEORGIA
CAPITAL
NBG has sold $1.12 billion since March 2020 up to July 2021 on the
foreign exchange market, with the last intervention coming in April 2021
US$ Sales
US$ Purchase
Net interventions
873
48%
38%
28%
18%
8%
-2%
873
287
243
300
113
287
280
243
100
-130
-198
2
-52
-200
-278
-130
-198
90
85
80
75
70
2016-11 2017-04 2017-09 2018-02 2018-07 2018-12 2019-05 2019-10 2020-03 2020-08 2021-01 2021-06
2014
2015
2016
2017
2018
2019
2020
2021*
Exchange rate indices (1 January=100)
Dollarization ratios
Sources: NBG
160
150
140
130
120
Source: NBG
USD/BYR
USD/GEL
USD/UAH
USD/TRY
USD/RUB
Both deposit and loan dollarization jumped in March 2020 on the back of the pandemic
and GEL depreciation, but have declined since then
110
100
90
03/Jan/20
16/Jan/20
29/Jan/20
11/Feb/20
24/Feb/20
08/Mar/20
21/Mar/20
03/Apr/20
16/Apr/20
29/Apr/20
12/May/20
25/May/20
07/Jun/20-
20/Jun/20
03/Jul/20
16/Jul/20
29/Jul/20
11/Aug/20
24/Aug/20-
06/Sep/20
19/Sep/20
02/Oct/20
15/Oct/20
28/Oct/20
10/Nov/20
23/Nov/20
06/Dec/20
19/Dec/20
01/Jan/21
14/Jan/21
27/Jan/21
09/Feb/21
22/Feb/21
07/Mar/21
20/Mar/21
02/Apr/21
15/Apr/21
28/Apr/21-
11/May/21
24/May/21
06/Jun/21
19/Jun/21
02/Jul/21
15/Jul/21
28/Jul/21
65
60
50
45
252525252
40
90
85
Loan dollarization
Deposit dollarization
80
75
70
Feb-05
Jun-05
Oct-05
Feb-06
Jun-06
Oct-06
Feb-07
Jun-07
Oct-07
Feb-08
Jun-08
Oct-08
Feb-09
Jun-09
Oct-09
Feb-10
Jun-10
Oct-10
Feb-11
Jun-11
Oct-11
Feb-12
Jun-12
Oct-12
Feb-13
Jun-13
Oct-13
Feb-14
Jun-14
Oct-14
Feb-15
Jun-15
Oct-15
Feb-16
Jun-16
Oct-16
Feb-17
Jun-17
Oct-17
Feb-18
Jun-18
Oct-18
Feb-19
Jun-19
Oct-19
Feb-20
Jun-20
Oct-20
Feb-21
Jun-21
60
50
565554
40
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