Georgian central bank sells $37.2 mln at foreign exchange auction
This was the 22nd intervention this year and as of now the bank has sold $749.65 million in total. Photo: Nino Alavidze/Agenda.ge.
Tweet 
Share
The National Bank of Georgia (NBG) sold $37.2 million during its foreign exchange auction today.
The average weighted bid rate was 3.3169.
This was the 22nd intervention this year and as of now the bank has sold $746.85 million in total.
As of today, 1 USD costs 3.3186 GEL, while 1 EUR costs 3.9143 GEL.
The Business Association of Georgia announces that the current situation in the foreign exchange market is ‘alarming’ and requires a timely intervention as the devaluation of the national currency and an unstable exchange rate 'weaken economic activity and hinder investment activities'.
The association suggests that at least during the pandemic, additional approaches should be developed that would return the foreign exchange market to equilibrium and avoid 'a very heavy blow to Georgian business'. The association has offered its support to the government in this process.
Georgian Finance Minister Ivane Machavariani said last week that the depreciation of the Georgian national currency, the lari, is caused by the political tensions in the country.
He said that it is important for the political process to return into a 'constructive framework, within the walls of the parliament', which will have a positive impact on the lari exchange rate.
Meanwhile, we will continue the fiscal stimulus, we will continue the reforms and responsible spending that will give us a competitive economy...We have to offer more to the world markets than we do it today. What we mainly offer the world today is tourism and we saw that when tourism stopped because of the pandemic it put pressure on the lari", Matchavariani said.
He added that Georgia should offer more in high-tech fields as Georgia has the resources to do so. Matchavariani said that the government will implement reforms that drive the mobilisation of these resources.