Georgia Capital Portfolio Overview

Floating exchange rate - policy priority Central Bank's interventions Sources: NBG 120 250 200 150 100 60 4040 4040 50 27202020 m TII II 0 NBG purchased US$ 165 million in 1H19 to farther accumulate reserves 100 60 40 US$ sale Real effective exchange rate (REER) Sources: NBG 155 145 135 125 115 Jan-2003 100 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 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 -200 -140 -50 -100 -80 -150 -120 -85 -15 -20 -40 ᎥᏝ -20-30201825 -20 -40 -30 -63 50 -70 -65 ויידי US$ purchase Bilateral exchange rate indices (Dec2012= 100) Sources: NBG 180 Flexible exchange rate regime plays a role as 160 shock-absorber 140 120 100 80 60 40 20 0 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 -eb-14 Apr-14 Jun-14 EUR/GEL Aug-14 RUB/GEL Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-1 Oct- Dec-17 Feb-18 Apr-18 Jun- Aug-18 Oct-18 Dec- Feb-19 Apr-19 Jun-19 TRY/GEL ⚫USD/GEL 80 180 160 75 140 70 120 100 65 80 60 60 60 40 55 20 0 50 Jul-11 105 95 85 Feb-03 Sep-03 Apr-04 Nov-04 Jun-05 Jan-06 Aug-06 Mar-07 Oct-07 May-08 Dec-08 60-In REER (Jan 2003=100) Dollarization ratios Source: NBG Loan dollarization Linear (REER (Jan 2003 = 100)) Deposit dollarization Dec-11 May-12 Oct-12 Mar-13 Aug-13 Jan-14 Jun-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 Dec-16 May-17 Feb-10 Sep-10 Apr-11 Nov-11 Jun-12 Jan-13 Aug-13 Mar-14 Oct-14 May-15 Dec-15 Jul-16 Feb-17 Sep-17 Apr-18 Nov-18 Jun-19 Oct-17 Mar-18 Aug-18 Jan-19 Jun-19 Page 62 50 55 60 65 75 70 80 GEORGIA CAPITAL

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