• News
  • Technology
  • Culture
  • Entertainment
  • Sport
  • Travel
  • Music
  • More
    • Politics
    • Lifestyle
    • TV
    • Games
Tuesday, January 31, 2023
  • Login
No Result
View All Result
NEWSLETTER
FINCHANNEL
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE
No Result
View All Result
FINCHANNEL
No Result
View All Result
ADVERTISEMENT
Home Georgia

Roman Gotsiridze: “In a period of two months, the Ministry of Finance of Georgia has lent GEL 500 million to banks. The GEL depreciation started from that period.”

by Mariam Chachua, FactCheck
October 9, 2017
in Georgia
0
Factcheck – Roman Gotsiridze:  “According to the government-proposed pension indexing rule, a GEL 400 pension will be in place in six-seven years.”
Share on FacebookShare on Twitter

The FINANCIAL — On 20 September 2017, at a session of the Parliament of Georgia, Roman Gotsiridze stated: “Since 5 July 2017, the Ministry of Finance of Georgia has lent GEL 0.5 billion to commercial banks as three-month long deposits. From the period when that money appeared in circulation, GEL started to depreciate.” According to the statement, Mr Gotsiridze believes that this latest depreciation of GEL was caused by the aforementioned decision of the Ministry of Finance.

FactCheck verified the accuracy of the statement.

With the aim of the efficient management of state funds and receiving additional revenues, the State Treasury started to deposit free funds in commercial banks beginning in July. The first auction was held on 4 July 2017 and GEL 50 million was deposited from the state budget to commercial banks for a duration of three months. Since July 2017, the GEL 50 million deposits have been transferred from the State Treasury to commercial banks on a weekly basis. The last auction was held on 5 September 2017 and a total of GEL 500 million was deposited from the State Treasury in commercial banks between July and September.

RelatedPosts

EECMD Statement on the conditions affecting the former President of Georgia

Ex-President Saakashvili – A Life Hanging By A Thread

Broken Dream: The oligarch, Russia, and Georgia’s drift from Europe

IMF Executive Board Completes First Review under the Stand-By Arrangement with Georgia

By depositing the government’s funds in commercial banks, the ability of banks to issue loans increased which was reflected in the money supply. If we take a look at the money supply dynamics, we will see that in the period of June-August the monetary base (without foreign currency) increased by GEL 325 million whilst it increased by GEL 685 million (22%) as compared to August 2016. In regard to broad money (money supply plus deposits in the national currency), the amount of broad money has increased significantly since June with the money supply having increased by GEL 888 million (13.5%) between June and September.
Under the floating currency exchange regime, the GEL exchange rate is determined by the ratio of GEL and USD on the currency market. All other things being equal, the reduction of USD inflows and/or an increase in the amount of GEL in circulation causes the depreciation of the GEL exchange rate.

GEL started to depreciate in the second half of August. In that period, the amount of money deposited by the Government of Georgia in commercial banks was GEL 400 million. Since the start of the GEL depreciation process, the government deposited an additional GEL 100 million in commercial banks. Since 5 September 2017, however, no further auctions vis-à-vis depositing money have been held. From August to September, the GEL to USD exchange rate depreciated by GEL 0.09.

Several factors such as economic growth, the dynamics of the balance of payments and the population’s expectations affect the determination of the currency exchange rate. At this moment, the balance of payments figures have not yet been published and so it is diffcult to assess the extent to which the decreased USD inflow has affected the exchange rate. However, according to the National Bank’s reports, revenues from abroad have a tendency of growth. Specifically, in the period of January-July 2017, tourism incomes increased by 28.5% whilst the volume of remittances grew by 20% (USD 134 million). The information in regard to foreign trade statistics is also promising. At this moment, we are informed that Georgia’s trade balance from January to August improved by USD 28 million as compared to the same period of the previous year.

Even though we do not have the full figures for the balance of payments, we have to take into account the fact that the number of tourists as well as tourism incomes decrease in September and October. If the decrease in tourism incomes is not compensated by another operation from the balance of payments, the amount of USD in the country will reduce and this in turn results in the depreciation of GEL. In light of decreasing incomes in USD, increasing the amount of GEL in the economy provides additional pressure on the national currency exchange rate.

The reason for the depreciation of GEL in September, together with increased M2, could have been the decreased USD inflow to the country. However, in order to assess the full picture, it is necessary to have the loan capital dynamics as well as the current balance of payments figures which will not be published until the end of this year.

Conclusion

Depositing the Government of Georgia’s funds in commercial banks has increased the banks’ loan resources as reflected in the money supply in the economy. In fact, in June-August, money supply increased significantly which would cause a depreciation of GEL under reduced USD inflows. The full information about USD inflows is given in the balance of payments. As the balance of payments figures are not yet available, it is difficult to assess what has affected the GEL exchange rate. Therefore, at this moment, FactCheck leaves Roman Gotsiridze’s statement WITHOUT A VERDICT.

 

Tags: Roman Gotsiridze: “In a period of two monthsthe Ministry of Finance of Georgia has lent GEL 500 million to banks. The GEL depreciation started from that period.”
ADVERTISEMENT
Mariam Chachua, FactCheck

Mariam Chachua, FactCheck

Related Posts

Ex-President Saakashvili – A Life Hanging By A Thread
Georgia

EECMD Statement on the conditions affecting the former President of Georgia

by Mariam Chachua, FactCheck
December 24, 2022
0

EECMD Statement on the conditions affecting Mikheil Saakashvili, the former President of Georgia Protecting the health and survival of Mikheil...

Read more
Ex-President Saakashvili – A Life Hanging By A Thread

Ex-President Saakashvili – A Life Hanging By A Thread

December 24, 2022
lifeafterivanishvili.jpg

Broken Dream: The oligarch, Russia, and Georgia’s drift from Europe

December 22, 2022
Moscow Accuses Tbilisi of Politicizing IPRM Meetings

IMF Executive Board Completes First Review under the Stand-By Arrangement with Georgia

December 22, 2022
Next Post

Irakli Abesadze: “The state foreign and domestic debt have doubled.”

Please login to join discussion
ADVERTISEMENT
  • Trending
  • Comments
  • Latest
Vaccination

How many people died after COVID-19 Vaccination?

November 20, 2021
How to Check KRA Pin Using ID Number

How to Check KRA Pin Using ID Number

June 25, 2018
Full-dose blood thinners not a cure for critically ill COVID-19 patients

How many people have died as a result of a COVID-19 vaccine?

October 4, 2021
Rishi Sunak’s billionaire wife also runs these three companies. 

Rishi Sunak’s billionaire wife also runs these three companies. 

October 25, 2022
Startled sherman furnished repair gang kansas

Startled sherman furnished repair gang kansas

0
Ft. trace falling nixon recovery sacred

Ft. trace falling nixon recovery sacred

0
FIFA 16 review: A mammoth footy bit of magic

Prepare mounted cited perspective

0
Protest threatened hurt conferences observation precise

Protest threatened hurt conferences observation precise

0
Marburg vaccine shows promising results in first-in-human study

Marburg vaccine shows promising results in first-in-human study

January 30, 2023
Maintenance Tips for Fire Extinguishers

Maintenance Tips for Fire Extinguishers

January 30, 2023
EBRD will issue a loan to help GOGC refinance a $250 Mln Eurobond

EBRD invests €218 million in the Georgian economy

January 30, 2023
Chinese DJI Drone Business is Blooming in Russo-Ukrainian War

Chinese DJI Drone Business is Blooming in Russo-Ukrainian War

January 30, 2023

Popular Last 24h

  • Chinese DJI Drone Business is Blooming in Russo-Ukrainian War

    Chinese DJI Drone Business is Blooming in Russo-Ukrainian War

    0 shares
    Share 0 Tweet 0
  • The London Diplomatic List, Addresses, Contacts & Working Hours

    0 shares
    Share 0 Tweet 0
  • Pfizer Names Albert Bourla Chief Operating Officer

    0 shares
    Share 0 Tweet 0
  • Jason Colodne and Colbeck Capital Management Support Stand Up for Homes with Hope

    0 shares
    Share 0 Tweet 0
  • How to Check KRA Pin Using ID Number

    0 shares
    Share 0 Tweet 0
  • Alejandro Betancourt López Credits Social Media With the Success of Hawkers

    0 shares
    Share 0 Tweet 0
  • EBRD invests €218 million in the Georgian economy

    0 shares
    Share 0 Tweet 0

LATEST POSTS

Marburg vaccine shows promising results in first-in-human study

Marburg vaccine shows promising results in first-in-human study

January 30, 2023
Maintenance Tips for Fire Extinguishers

Maintenance Tips for Fire Extinguishers

January 30, 2023
EBRD will issue a loan to help GOGC refinance a $250 Mln Eurobond

EBRD invests €218 million in the Georgian economy

January 30, 2023
Chinese DJI Drone Business is Blooming in Russo-Ukrainian War

Chinese DJI Drone Business is Blooming in Russo-Ukrainian War

January 30, 2023
Jason Colodne and Colbeck Capital Management Support Stand Up for Homes with Hope

Jason Colodne and Colbeck Capital Management Support Stand Up for Homes with Hope

January 30, 2023
What are the top 3 strategies for business automation?

Protected: Want Loyal Employees? Do This

January 26, 2023
Fugitive Extradited from Cameroon to the United States to Serve 80 Year Prison Sentence

Second Bank Employee Admits Role in Fraud Conspiracy

January 25, 2023
Sussex County Woman Sentenced to 34 Months in Prison for Concealing Terrorist Financing to Syrian Foreign Terrorist Organizations

Sussex County Woman Sentenced to 34 Months in Prison for Concealing Terrorist Financing to Syrian Foreign Terrorist Organizations

January 25, 2023
Brooklyn Park Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud Scheme

Brooklyn Park Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud Scheme

January 25, 2023
Former CEO Of Email Security Company Sentenced To Five Years In Prison

Former CEO Of Email Security Company Sentenced To Five Years In Prison

January 25, 2023

LATEST INTERVIEWS

Russian Patriarch Kirill Says Dying In Ukraine ‘Washes Away All Sins’

Interview: Why Putin Might Prefer A Stalemate To Going Nuclear On Ukraine

by Mariam Chachua, FactCheck
October 22, 2022
0

Kvaratskhelia Football Dynasty: Mamia, Badri, Khvicha and Tornike

Kvaratskhelia Football Dynasty: Mamia, Badri, Khvicha and Tornike

by Mariam Chachua, FactCheck
August 11, 2022
0

“Green business is a key instrument to support business development in a sustainable way”

“Green business is a key instrument to support business development in a sustainable way”

by Mariam Chachua, FactCheck
July 27, 2022
0

Running an environmentally friendly business helps to reduce impact on the environment

Running an environmentally friendly business helps to reduce impact on the environment

by Mariam Chachua, FactCheck
July 27, 2022
0

Georgian Industrial Group Continuing to Implement Energy Efficient Projects and Contribute to Sustainable Business Development

Georgian Industrial Group Continuing to Implement Energy Efficient Projects and Contribute to Sustainable Business Development

by Mariam Chachua, FactCheck
July 27, 2022
0

“We have planted under 50 000 trees and seedings”

“We have planted under 50 000 trees and seedings”

by Mariam Chachua, FactCheck
July 27, 2022
0

The Committee on the Environment and Natural Resources of Georgia – The Role of the Public Sector in Promoting Green Business

The Committee on the Environment and Natural Resources of Georgia – The Role of the Public Sector in Promoting Green Business

by Mariam Chachua, FactCheck
July 27, 2022
0

Leading the way for Green Corporate Culture, With 100-step Environmental Program Completed RMG enters the New Phase of Green Development

Leading the way for Green Corporate Culture, With 100-step Environmental Program Completed RMG enters the New Phase of Green Development

by Mariam Chachua, FactCheck
July 27, 2022
0

Newsletter

ADVERTISEMENT

GET IN TOUCH

E-mail your company news at:

news (at) financial.ge Letters to the Editor: editor (at) finchannel.com

Local Marketing contact:

(+99532) 2252 275 | 76 EXT: 1 (+995 558) 03 03 03 (mobile) marketing (at) finchannel.com

Requests from abroad:

(+99532) 2252 275 | 76 EXT: 7 (+995599) 96 52 52 Email: zviadi (@) finchannel.com Contact video editor: E-mail: video (at) financial.ge

Postal address: 17 Mtskheta str. Tbilisi, Georgia 0179 The FINANCIAL

RESOURCE

  • Work at the FINANCIAL
  • ePaper
  • Advertise in The FINANCIAL
  • Access ePaper
  • Guest posts
  • Contributed articles
  • AmericanStockNews
  • Coupon Codes
  • GLOSSY MAG
American Culture Center
ACC Partner

GUIDEBOOK

  • Meet our team
  • Invest in Georgia
  • Become contributor
  • Archive

FOLLOW US

  • Facebook
  • Twitter
  • Google+
  • Youtube
No Result
View All Result
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.