Georgian central bank sells $25.4 million at foreign exchange auction
Tweet 
Share
The National Bank of Georgia (NBG) offered $40 million at the foreign exchange auction today of which $25.4 million was bought, announces the NBG.
The average weighted rate was 3.4353.
The official exchange rate shows that as of today 1 USD costs 3.4363 GEL and 1 EUR costs 4.1115 GEL.
On April 12 the executive board of the International Monetary Fund (IMF) published the eighth review of Georgia’s economic reform programme supported by a four-year extended arrangement under the Extended Fund Facility (EFF ).
The review also discussed the devaluation of the lari, and noted that monetary policy may need to be increased to target inflation.
Due to consecutive shocks related to concerns over travel restrictions in the second half of 2019, the outbreak of the pandemic in early 2020, and recent spillovers of trading partner currency volatility, the lari has come under repeated bouts of pressure... The most recent policy rate increase responds to elevated inflation expectations following a somewhat prolonged period of inflation exceeding its target. Further increases in the policy rate may be needed if external pressures persist", says the IMF.
The IMF suggests that in addition to prudent macroeconomic policies, advancing the structural reform agenda will be essential to sustain a durable and inclusive recovery.
The executive board of the International Monetary Fund (IMF) has just completed the eighth review of Georgia’s economic reform programme supported by a four-year extended arrangement under the Extended Fund Facility (EFF ).
The National Bank of Georgia (NBG) offered $40 million at the foreign exchange auction today of which $27.5 million was sold, announces the NBG. The average weighted rate was 3.4401.
The Georgian national currency, the lari, has depreciated in value by 2.6% against the US dollar in the last month. The official exchange rate shows that as of today 1 USD costs 3.4464 GEL (previous rate was 3.4118 GEL) and 1 EUR costs 4.0426 GEL (previous rate was 4.0044 GEL).
The latest ‘Europe and Central Asia Economic Update’ published by the World Bank reads that the Georgian economy is unlikely to recover to pre-Covid levels until late 2022. The World Bank says that the Georgian economy is projected to expand to 4% in 2021 and then to firm to 5% in 2022.
The National Bank of Georgia (NBG) has sold $30 million at foreign exchange auction today as a result of which the national currency, the lari, has strengthened slightly against the US dollar and depreciated against the euro.