In dollars we trust

The threat of a possible default in the US economy this summer had decreased the level of trust towards USD worldwide. In some countries people have started using their local currency instead of USD, which was previously commonly used. However in Georgia this is not the case as trust towards USD is still very high and stable.

During this summer the National Bank of Georgia carried out six currency auctions and purchased USD 55 mln. Analysts think this is not because there is no trust in USD, because in the same period deposits in USD increased in Georgia by 8% and in Euros by 5%. When either the USD or Euro were having problems worldwide the trust towards these currencies in Georgia remains strong. Deposits in the country are mainly made in foreign currency with 74% in USD and 19% in Euros.