National Bank of Georgia sells $20 mln amid Georgian lari depreciation

The National Bank of Georgia has sold $20 mln today amid Georgian lari depreciation, announces the National Bank of Georgia.

The weighted average exchange rate amounted to 2.9712 lari, says the NBG.

The depreciation of the exchange rate has boosted inflationary expectations, the NBG says.

The National Bank of Georgia (NBG) has also sold $40 million at an exchange auction on September 27, 2019 and $32.8 million at an exchange auction on August 1 as the Georgian lari continued to depreciate.

The National Bank of Georgia (NBG) has increased the refinancing rate by 0.5 percentage points to 7 per cent on September 4, and then again by 0.5 to 7.5 per cent on September 25 and to 8.5 per cent on October 23.

Since October 17, 2019 the National Bank of Georgia (NBG) has decreased the minimum foreign currency reserve requirements for commercial banks in Georgia from a mandatory 30 per cent to 25 per cent, which should allow commercial banks to lend the freed up five per cent –  about $700 million.