Posted: 6 months ago

December Sees a Significant Surge in GEL Circulation, Reaching Nearly 6 Billion GEL

According to the latest data from the National Bank of Georgia (NBG), there was a notable increase in the demand for cash in December, resulting in a significant rise of over 300 million GEL in the cash circulation. By the close of 2024, the GEL in circulation almost touched the 6 billion GEL mark, settling at approximately 5.8 billion GEL.

However, the increase observed in 2023 pales in comparison to the growth seen in 2022. While 2023 witnessed an increase of 470 million GEL in the currency circulation, 2022 saw a more robust growth, surpassing 500 million GEL.

The surge in cash withdrawals before the New Year contributed to a 305 million GEL increase, impacting the liquidity in banks correspondingly. This demand represented a threefold rise compared to November figures.

The monthly review by the SEB reveals that in November, reserve money experienced a decline of 294.4 million GEL (4.3%), bringing the total to ₾6.5 billion. On average, the monetary base saw a reduction of 188.3 million GEL (2.8%). Factoring in the internal governmental transactions within the banking sector, the NBG’s net foreign exchange sales amounted to 97.1 million USD. In total, foreign exchange dealings, including direct transactions by the SEB, diminished foreign assets by over 100 million USD.

In December, the banking system experienced a liquidity shortfall exceeding 1.4 billion GEL, which was counterbalanced by the issuance of refinancing loans. The loans issued amounted to over 2 billion GEL, including overnight loans amounting to nearly 300 million GEL.

This data points to a dynamic shift in GEL circulation and the broader financial activities within Georgia's banking system, reflecting the fluctuating economic trends as the year drew to a close.