Georgian lari at historic low:
1 USD costs 3.0118 GEL
As of today 1 USD costs 3.0118 GEL while 1 EUR costs 3.3684 GEL. Photo: Nino Alavidze/Agenda.ge.
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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.
As of today 1 USD costs 3.0118 GEL while 1 EUR costs 3.3684 GEL.
To control the lari’s changing value against the US dollar the National Bank of Georgia (NBG) sold $20 million at foreign exchange auction on March 13.
The weighted average exchange rate was 2.9936 GEL for every 1 USD.
The NBG also 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 the coronavirus, the NBG says that another reason for the depreciation of the lari is the decline in international oil prices.
The NBG said that the main task is now to maintain price stability in Georgia and to keep a low rate of inflation.
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 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.
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.
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.
The National Bank of Georgia (NBG) announced today that it will sell $40 million at foreign exchange auction tomorrow to control the national currency’s changing value against the US dollar. As a result of the last two interventions the NBG has already sold $60 million in total.
The National Bank of Georgia has sold $20 million to stabilise the Georgian lari today after further depreciation. Against the backdrop of the outbreak of the coronavirus and the global oil crisis, the Georgian national currency, the lari, has significantly depreciated against the USD in recent weeks.
The National Bank of Georgia has sold $40 million to stabilise the Georgian lari against the backdrop of its depreciation. As of today, 1 USD costs 3.1920 GEL, while 1 EUR costs 3.5058 GEL. The bank says that the aim of the interventions is to reduce excess fluctuations in the foreign exchange market and avoid negative expectations on the market.
Georgian experts expect the Georgian lari to continue appreciating at least until the end of this year if some unexpected event does not occur.
The National Bank of Georgia (NBG) put up $40 million at foreign exchange auction earlier today against the depreciation of the Georgian lari, however only $29.65 million was sold.