According to the National Bank of Georgia, in September 2020, the volume of money supply in the country reached a new record high. In particular, M2, 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 GEL 13.07 billion.
For comparison, a year ago, this figure was 1.8 billion GEL less and amounted to 11.26 billion GEL. The annual increase in the money supply is 16.04%. Compared to August, the money supply has increased by 429.7 million GEL. Like the M2, other monetary aggregates, including cash in direct circulation, have increased to GEL 4.46 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.
