BAKU, Azerbaijan, October 27
By Tamilla Mammadova – Trend:
In September 2020, the volume of money supply in Georgia reached a new record high, Trend reports via the National Bank of Georgia.
In particular, M2 (calculation of the money supply that includes all elements of M1 as well as "near money" - non-cash assets that are highly liquid and easily converted to cash), or broad money, which reflects cash in the economy and deposits in commercial banks (excluding deposits from the banking sector and the government sector), reached 13.07 billion lari ($4.07 billion).
For comparison, a year ago, this figure was 1.8 billion lari ($560.7 million) less and amounted to 11.26 billion lari ($3.5 billion).
The annual increase in the money supply is 16.04 percent. Compared to August, the money supply has increased by 429.7 million lari ($133.5 million).
Like the M2, other monetary aggregates, including cash in direct circulation, have increased to 4.46 billion lari ($1.3 billion).
The increase in the money supply is due to various factors, including an increase in government spending, which aims to mitigate the economic and social effects of the COVID-19 crisis.
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