We expect average GEL rate at 2.55 vs dollar in 2023”- Galt&Taggart economic review reads.

The GEL deprecated by 3.8% m/m in May, but still gaining 4.4% vs dollar year-to-date. We attribute the recent depreciation to oneoff factors, as FX inflows remain robust and tourism revenues are growing strongly.

Notably, NBG purchased US$ 782.9mn in 4M23 (o.w. US$ 322.4mn in April), resulting record high gross international reserves reaching US$ 5.1bn in April 2023. We expect average GEL rate at 2.55 vs dollar in 2023.