The head of the NBG considers that the increase in money transfers from Russia is just a "temporary phenomenon"

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Read: 605     11:00     28 Июль 2022    

President of the National Bank of Georgia Koba Gvenetadze said that the National Bank considers the increase in money transfers from Russia as a "temporary phenomenon".

Koba Gvenetadze presented the annual report of the National Bank at the meeting of the Finance and Budget Committee of the Parliament. At this meeting, the deputy from the "National Movement" Roman Gotsiridze asked him a question regarding increasing money transfers from Russia.

“We see that in 2 months more money came from Russia than in 1 year - $550 million, which had a significant impact on the strengthening of the lari,” said Gotsiridze and turned to Gvenetadze:

« What are your expectations for the end of the year and in what range do you imagine the movement of the lari exchange rate? »?

Koba Gvenetadze replied that there are many events that cannot be predicted, and he cited the following as an example:

«When Russian aggression began in Ukraine, we expected a decrease in remittances and exports, but the opposite happened. This once again highlights how high the level of unpredictability is. Therefore, we could not calculate and take it into account in any way. We thought the opposite. Not only we, but also all international organizations that worked on this».

According to Gvenetadze, it is difficult to say what will happen in the future:

«This is money transferred by Georgians living there or those citizens who moved to Georgia for a certain period of timehe stated and also noted that it is unknown how long these citizens will stay in Georgia.

«Therefore, our approach is to treat them as a one-time income. It's safer for us».

According to the President of the National Bank, "if we assume that this will continue, then the policy will also change".

«If you look, for example, in May there were more transfers from Russia, then in June it slightly decreased. Therefore, our approach is cautious, as we view this as a temporary phenomenon. Of course, this has affected the exchange rate and economic activity, this money is being spent, but the approach in this regard will be cautious», said Gvenetadze.

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The head of the NBG considers that the increase in money transfers from Russia is just a "temporary phenomenon"

2022/07/5446--1658991822.jpg
Read: 606     11:00     28 Июль 2022    

President of the National Bank of Georgia Koba Gvenetadze said that the National Bank considers the increase in money transfers from Russia as a "temporary phenomenon".

Koba Gvenetadze presented the annual report of the National Bank at the meeting of the Finance and Budget Committee of the Parliament. At this meeting, the deputy from the "National Movement" Roman Gotsiridze asked him a question regarding increasing money transfers from Russia.

“We see that in 2 months more money came from Russia than in 1 year - $550 million, which had a significant impact on the strengthening of the lari,” said Gotsiridze and turned to Gvenetadze:

« What are your expectations for the end of the year and in what range do you imagine the movement of the lari exchange rate? »?

Koba Gvenetadze replied that there are many events that cannot be predicted, and he cited the following as an example:

«When Russian aggression began in Ukraine, we expected a decrease in remittances and exports, but the opposite happened. This once again highlights how high the level of unpredictability is. Therefore, we could not calculate and take it into account in any way. We thought the opposite. Not only we, but also all international organizations that worked on this».

According to Gvenetadze, it is difficult to say what will happen in the future:

«This is money transferred by Georgians living there or those citizens who moved to Georgia for a certain period of timehe stated and also noted that it is unknown how long these citizens will stay in Georgia.

«Therefore, our approach is to treat them as a one-time income. It's safer for us».

According to the President of the National Bank, "if we assume that this will continue, then the policy will also change".

«If you look, for example, in May there were more transfers from Russia, then in June it slightly decreased. Therefore, our approach is cautious, as we view this as a temporary phenomenon. Of course, this has affected the exchange rate and economic activity, this money is being spent, but the approach in this regard will be cautious», said Gvenetadze.

apsny.ge





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