GEL deposits decrease

Official statistics state that deposits in GEL in the banks have decreased in the first quarter of 2009 whereas deposits in foreign currency have increased by 15.3%. Former President of the NBG Nodar Javakhishvili explains that this is due to decreasing trust in the GEL.

Former Minister of Economy and champion of the post-Rose Revolution economic developments Kakha Bendukidze has been blamed for creating this lack of trust in the national currency. Some time ago Bendukidze suggested that the USD and EURO should circulate in Georgia as legal tender alongside the GEL. He explained that this would provide an incentive for investors as they would thus not have to bother about exchange rates and extra expenses.