According to the report, in January-November, the National Bank of Georgia bought almost 500 million US dollars through foreign exchange auctions and without auctions.
"Besides, even without migrants' deposits, practically the same amount of foreign currency liquidity was accumulated in the banking system, which was historically negative for the exchange rate of the lari, but this time, the inflows are so strong that this important factor could not affect the dynamics of the exchange rate.
Despite the mentioned trend, we maintain the assessment that until we see further weakening of the US dollar internationally, the daily GEL is at its maximum. In this regard, the arguments are the dynamics of inflation and the average exchange rate of the lari against the currencies of the main economic partners.
Particularly, in accordance with our expectations, a monthly deflation of 0.3% was recorded in December, which is equivalent to a 0.7% decrease in the overall price level, taking the seasonal adjustment into account. Although the annual inflation is still very high and amounts to 9.8%, however, the normalization in the monthly indicators is obvious. In terms of the average exchange rate of the GEL, it should be noted that the actual rate, compared to the long-term estimate, is slightly, but still stronger," – the TBC Capital report reads.