National Bank of Georgia sells $30 mln at foreign exchange auction

  • NBG Head Koba Gvenetadze said back in mid-September that the central bank would sell more than $200 million by the end of this year. Photo: Nino Alavidze/Agenda.ge.

Agenda.ge, 18 Nov 2020 - 20:15, Tbilisi,Georgia

The National Bank of Georgia sold $30 mln at foreign exchange auction today.

The average weighted bid rate was 3.2902.

This was the 23rd intervention this year and as of now the bank has sold $776.85 million in total.

As of today, 1 USD costs 3.2919 GEL, while 1 EUR costs 3.9098 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 in early November 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. 

NBG Head Koba Gvenetadze said back in mid-September that the central bank would sell more than $200 million by the end of this year.

He explained that the purpose of the interventions is not to control the lari's depreciation against the US dollar, but serves to supply foreign currency to the market.

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