Currencies of Georgia, Armenia and Tajikistan lead in growth in 2022

The national currencies of Georgia, Armenia and Tajikistan in 2022 topped the world ranking in terms of growth against the dollar. The reason for this is tens of thousands of visitors who brought billions of dollars in savings.

The growth of the Armenian dram, Georgian lari and Tajik somoni - in infographics (data from https://ru.investing.com/).

Many Russian speakers live in these countries, Russians do not need a visa and fairly simple conditions for transferring savings to local banks. An increase in the number of exchange operations of dollar savings for the national currency pushes the dollar up.

Money transfers from Russia to Georgia in 2022 increased 5 times, amounted to more than 60% of all transfers to the country and exceeded USD 1.75 billion in amount. About USD 2.8 billion in the first 10 months of 2022 were transferred to Armenia, this is almost four times more than the same period in 2021. In Tajikistan, remittances increased by 50% in the first half of 2022.

Such a strong influence of relocation is observed only in small states. For comparison, in Kazakhstan, the national currency, tenge, on the contrary, decreased by 7% against the dollar. At the same time, Russians also massively left for Kazakhstan and transferred their savings.

At the beginning of 2022, the economic benefits for host countries were not clear, but their economies responded with strong growth throughout the year. The Tajik economy grew by 7% against the previously predicted 4-5%. In Georgia, by the end of 2022, growth of up to 10% was predicted, consumer demand and housing construction are growing there.

Source: https://www.bloomberg.com/news/articles/2022-12-21/putin-s-war-made-his-neighbors-currencies-the-best-in-the-world?srnd=premium- Europe