“Strong recovery along with tight monetary policy and resumed tourism helped GEL to partially regain its value vs. dollar from May 2021, strengthening by 5.2% YTD at 3.1/$” – reads the recent report coming from the leading investment bank in Georgia, Galt and Taggart.
Galt and Taggart do not expect sharp volatility in FX market in 2H21, with GEL ranging 3.1-3.2 in this period. “In case of sharp volatility, NBG expresses readiness to intervene, which will support to limit FX-pass through on inflation. We see GEL’s strong appreciation potential from 2022 amid expected full recovery in tourism (we assume tourism to recover to 36% of 2019 level in 2021)” – reads the report.
