Georgian central bank sells $39.5 million at foreign exchange auction

The National Bank of Georgia (NBG) offered 50 million USD at the foreign exchange auction on Wednesday of which 39.5 million USD was sold, the bank announced yesterday.

In the first foreign exchange intervention this year, the NBG made the sale with an average weighted rate of 3.3947. 

Georgian Finance Minister Lasha Khutsishvili told TV channel Rustavi 2 yesterday the process of stabilisation of the exchange rate had begun and noted “there is no basis for further depreciation of the exchange rate,” adding in the long run it is would depend on the situation in the Black Sea region, referring to the military conflict in Ukraine which Russia began 15 days ago.

• Economy Minister: depreciation of Georgian lari mainly caused by “emotional factors”

Khutsishvili also addressed the public and businesses, saying the current macroeconomic condition in the country had not “deteriorated substantially, on the contrary, the growth rate remains in all directions,” naming increase figures in exports of locally produced goods which amounted to 47.6 percent in January and money transfers which totalled 168.8 million USD in January. 

Economy Minister Levan Davitashvili said on Tuesday macroeconomic parameters in Georgia were “very healthy and stable,” and citing no “objective” grounds for the depreciation of the national currency. He also said ongoing political processes in the country and “agitation created around the national currency” were contributing to the devaluation.

The official exchange rate shows that as of today 1 USD costs 3.4019 GEL and 1 EUR costs 3.7360 GEL. 

In 2021, the NBG sold 332.9 million USD through nine foreign exchange auctions. Per data of the central bank, Georgia's foreign exchange reserves equalled 4,078,074,900 USD as of January 2022.