Georgia economic update: Lari depreciation hits this year’s anti-record, loans taken out in Georgian lari decreased by 3.93%
By Veronika Malinboym
Tuesday, April 27
As a result of today’s trading, the national currency of Georgia, the Georgian Lari, depreciated by 0.7 tetri against the US dollar, leading to $1 costing GEL 3.4534, hitting this year’s anti-record. Similarly, the Georgian lari depreciated against the euro by 2.36 tetri, resulting in 1 euro costing GEL4.1765.
Compared to the exchange rates set earlier this year, the Georgian Lari depreciated by a total of 17.68 tetri against the US dollar and by a total of 15.32 tetri against the euro. In an attempt to reduce the fluctuation of the national currency, the National Bank of Georgia carried out 7 interventions this year, resulting in the selling of a total of $242.9 million including $30 million that the National Bank of Georgia sold during the last auction that took place on April 22.
Earlier today, the National Bank of Georgia released new data which showed that the commercial banks in Georgia gave out 3.93% fewer loans in Georgian lari, while the number of loans given out in foreign currency increased by 0.85% month-on-month. In Mach 2021, Georgian commercial banks gave out a total of GEL 37.94 billion in loans and received a total of GEL36.03 billion in deposits.
The amount of deposits made in March 2021 increased by 0.03%, while the number of loans decreased by 1.27%. Compared to February 2021, assets of the Georgian banks in general increased by 1.5% or GEL 848.44 million amounting to a total of GEL 58.15 billion. As of right now the equity capital of Georgia’s banking sector equals 10.76% of the total assets of the commercial banks and amounts to approximately GEL6.26 billion. There are currently 15 commercial banks in Georgia, including one branch of a non-resident bank, and 14 foreign-owned banks in total.
