Georgia’s central bank sells $20 mln to stop depreciation of lari
As of today 1 USD costs 2.9942 GEL while 1 EUR costs 3.3421 GEL. Photo: Nino Alavidze/Agenda.ge.
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The National Bank of Georgia (NBG) has sold $20 million at foreign exchange auction to control the national currency’s changing value against the US dollar.
The weighted average exchange rate was 2.9936 GEL for every 1 USD.
As a result of today’s trade lari depreciated against the US dollar by just 4.48 tetri, while against the euro it went down by 2.76 tetri.
As of today 1 USD costs 2.9942 GEL while 1 EUR costs 3.3421 GEL.
Yesterday the NBG released a statement in which it said that the recent depreciation of the lari exchange rate was linked to uncertainty caused by the coronavirus outbreak that has been transmitted to the financial markets through the channel of expectation.
Besides coronavirus the NBG says that another reason for lari depreciation is the decline in international oil prices.
The NBG said that the main task is now to maintain price stability in Georgia, to keep the low rate of the inflation.
What support can business expect?
The government of Georgia has presented an anti-crisis plan for Georgian businesses in order to ease the burden caused by the coronavirus crisis. The government responded to the demand of the hotels, restaurants, tourist agencies and tour operators in Georgia and decided to postpone payment of property and income tax by four months.
Georgian commercial banks, particularly TBC Bank, Bank of Georgia and Liberty Bank will accept postponed payment on loans for three months. The banks say the decision has been made to prevent people gathering in bank branches and thus to prevent the spread of the new coronavirus.
The government of Georgia, the National Bank of Georgia (NBG) and commercial banks are teaming up to mitigate the negative impact of the novel coronavirus (COVID-19) on the tourism sector of the country. PM Gakharia and the chief executive officers of commercial banks signed an agreement earlier today, which will come up with an action plan to support the tourism sector in the coming days.
The National Bank of Georgia recommends that consumers use contactless pay methods instead of paying by cash to prevent the spread of the new coronavirus. It also urges people to use distant banking services instead of going to the banks.
The impact of the coronavirus is rippling through the Georgian economy, but it might take a few months to fully see the fallout in data that track economic performance in Georgia.
1 USD costs 3.0118 GEL
Against the backdrop of the outbreak of the coronavirus and the global oil crisis, the Georgian national currency, the lari, has hit a record low against the US dollar after falling to 3.0118.
The National Bank of Georgia has sold $40 mln today amid the depreciation of the Georgian lari, announces the National Bank of Georgia. As of today, 1 USD costs 3.1568 GEL, while 1 EUR costs 3.4109 GEL.
TBC Bank has received a license from the Central Bank of Uzbekistan to launch operations in the country starting June 2020.