Savings in GEL decrease

In 2008 bank savings in foreign currency increased by 30%. However, savings in the national currency GEL have gone down.

Currently in Georgian banks there are deposits of USD 1.116 billion, Euro 701.1 million, GBP 11.6 million and around 0.5 million Swiss Francs. At the beginning of 2008 deposits in USD were 80% of total foreign deposits and those in Euro 19%. By January 2009 USD deposits made up 75% of the total and Euro deposits increased to 24%.

From 2005-2007 there was a tendency to save in local currency deposits. In those years there was a serious rise in confidence in the GEL and its rate against the USD was solid and stable, while the USD itself was going down. Since the Russian aggression however confidence in the GEL has fallen, and the November plunge of the GEL rate against USD has undermined public confidence in the GEL. People have started keeping their savings in USD or other foreign currencies, considering them more reliable and safe.