NBG: No risk of financial instability of Georgia

The National Bank of Georgia (NBG) announces that there is no risks of financial instability of Georgia in the short and long term of Georgia as GEL exchange rate fluctuations are common experience.

The GEL plunged to the lowest point in two years against the US dollar this week, prompting the economic experts to consider it as the governments artificial step for balancing the budget deficit, while later the finance minister cited an increased demand for US dollar as the cause.

NBGs Vice-president Mestvirishvili denied the artificial intervention in balancing the exchange currency said that is technically impossible.

Commenting on the GEL depreciating,the government promises that there is nothing alarming.

"Certainly in October-November the incoming number of tourists is decreasing which is the main source of US dollars inflow to the country. Moreover, import-export transitions have also increased the demand for US dollar currency. There is no reason for concern, Georgias Minister Finance Nodar Khaduri said.

Khaduri also noted that the finance ministry had the permanent consultation with the National Bank of Georgia (NBG) and in case it will need to intervene, NBG has the international reserves. According to NBG, the international reserves of the NBG have been increased by $237.1 million since early 2013, reaching a record maximum $3.11 billion by October this year.

Georgian GEL fell to a $1.6801 low on November 8, the lowest point since December 2011.