Page 30 - GEORptMar20

the World Economic Forum in Davos.
Citigroup would discuss with the Georgian government engagement in the process of budget expenditure digitisation using modern accounting and payment systems and share its experience in the field, according to a government release.
The bank also expressed its willingness to participate in refinancing the government's EUR-denominated securities, amounting to €500mn, in 2021.
“There was a great conversation with the Prime Minister of Georgia. We talked about economics and technologies, specifically the technologies used in the government sector for efficiency and effectiveness. We discussed investments and ways in which Georgia could attract more capital investment. We also talked about the financing strategy and the financing of processes in the global markets. Overall it was a brilliant meeting. It makes us happy about everything that is happening in Georgia,” said Citigroup’s Collins after meeting Gakharia.
7.0​ FX
Georgia - Foreign exchange rate
2014
2015
2016
2017
2018
Mar’19
Jun’19
Sep’19
Dec’19
Currency (units per EUR) (average)
2.346
2.520
2.617
2.832
3.054
3.037
3.132
3.266
3.227
Currency (units per USD) (average)
1.766
2.270
2.367
2.509
2.675
2.684
2.777
2.965
2.905
Georgia’s currency strengthens on monetary policy, rhetoric says Galt & Taggart
Strict monetary policy and the rhetoric of both government and central bank resulted in Georgia's currency strengthening versus the US dollar, explained Eva Bochorishvili, head of research at the investment bank Galt & Taggart, quoted by Business Media. ​Steady robust macroeconomic fundamentals provide solid grounds to the trend, she implied.
"Changing the rhetoric concerns both the central bank and the government. They are more cautious [compared to last year]. There are times when the fundamentals cannot explain the exchange rate movements. The central bank’s policy has also supported better expectations and brought foreigners into the market, thus strengthening the local currency,” said Bochorishvili.
At its January 29 board meeting Georgia’s central bank maintained its refinancing rate at 9%, where it hiked it last autumn, and said that monetary policy would remain tight until medium-term inflation expectations declined to the 3% target. Headline inflation was 7% in December but it dropped to 6.4% in January.
Non-resident investors came in and bought government securities, Galt & Taggart explained. Their purchases have quadrupled, according to estimates outlined by Bochorishvili.
Also, the macro fundamentals cannot explain the currency weakening last year she added — implying that the strengthening that is visible now reflects a correction. Indeed, Georgia's central bank has constantly evaluated during the autumn and winter that the national currency remains undervalued.
30​ GEORGIA Country Report​ March 2020 ​​www.intellinews.com