Despite the high inflation rate, growth of monetary aggregates has been relatively modest, underlining the fact that the recent spike in inflation has been owing to external factors rather than the domestic economy overheating. Growth in reserve money expanded by 11% year on year in December 2010, slightly above the rate of 7% in September. Broad money (M3) grew more rapidly, registering a year-on-year growth of 35% in December, well above the rate of 8% at the end of 2009, but below the rate of 41% in September 2010. The National Bank of Georgia (NBG, the central bank) has set a target growth rate for broad money of 20-25% for 2011.

Total deposits in national and foreign currencies grew by 43% year on year at the end of 2010. The recent stabilisation of the lari has not dramatically influenced depositors' preference for keeping their savings in foreign currency. Foreign-currency deposits comprised 72.1% of total deposits at the end of 2010, only marginally down from 73.4% recorded at the end of 2009.

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