Georgian central bank sells $39.5 million at foreign exchange auction
The official exchange rate shows that as of today 1 USD costs 3.4019 GEL and 1 EUR costs 3.7360 GEL. Photo: Nino Alavidze/Agenda.ge
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The National Bank of Georgia (NBG) offered 50 million USD at the foreign exchange auction on Wednesday of which 39.5 million USD was sold, the bank announced yesterday.
In the first foreign exchange intervention this year, the NBG made the sale with an average weighted rate of 3.3947.
Georgian Finance Minister Lasha Khutsishvili told TV channel Rustavi 2 yesterday the process of stabilisation of the exchange rate had begun and noted “there is no basis for further depreciation of the exchange rate,” adding in the long run it is would depend on the situation in the Black Sea region, referring to the military conflict in Ukraine which Russia began 15 days ago.
Khutsishvili also addressed the public and businesses, saying the current macroeconomic condition in the country had not “deteriorated substantially, on the contrary, the growth rate remains in all directions,” naming increase figures in exports of locally produced goods which amounted to 47.6 percent in January and money transfers which totalled 168.8 million USD in January.
Economy Minister Levan Davitashvili said on Tuesday macroeconomic parameters in Georgia were “very healthy and stable,” and citing no “objective” grounds for the depreciation of the national currency. He also said ongoing political processes in the country and “agitation created around the national currency” were contributing to the devaluation.
The official exchange rate shows that as of today 1 USD costs 3.4019 GEL and 1 EUR costs 3.7360 GEL.
In 2021, the NBG sold 332.9 million USD through nine foreign exchange auctions. Per data of the central bank, Georgia's foreign exchange reserves equalled 4,078,074,900 USD as of January 2022.
Macroeconomic parameters in Georgia are “very healthy and stable” and depreciation of the Georgian lari exchange rate is mainly caused by “emotional factors,” Georgian Economy Minister Levan Davitashvili said on Tuesday.
The Georgian government has demonstrated a very high level of crisis management several times, Levan Davitashvili, the Minister of Economy and Sustainable Development, said on Tuesday.
The Consumer Price Index in Georgia increased by 0.9 percent in February 2022 month-on-month, while the annual inflation rate totalled 13.7 percent, the latest inflation data of the National Statistics Office of Georgia (Geostat) shows.
The estimated real Gross Domestic Product (GDP) of Georgia increased by 18 percent in January 2022 year-on-year, the latest data from the National Statistics Office of Georgia (Geostat) shows.
The current foreign exchange rates show concerns about the Georgian lari depreciation are “groundless,” Georgian Finance Minister Lasha Khutsishvili said on Thursday.
Khutsishvili asserted all sources of currency inflow in the country, including export and tourism, were “functional” and “growing.”
The role of the Pension Fund in the development of the economy, importance of long-term investment sources and legislative initiatives for the Fund were in the focus of a meeting between Georgian Prime Minister Irakli Garibashvili and members of the Pension Fund Investment Board on Tuesday.
Remittances to Georgia from abroad reached $183.4 million in February 2022, marking a 13.7 percent increase compared to the same month of last year, the National Bank of Georgia (NBG) announced on Tuesday.
The National Bank of Georgia (NBG) has denied the information on an alleged termination of financial transfers from European countries to Georgia, calling it a “lie and an attempt to mislead the citizens” on Wednesday.
Commercial banks in Georgia loaned 43.25 billion GEL ($13bln/€12bln) and received deposits of 37.63 billion GEL ($11bln/€10bln) in February 2022, the National Bank of Georgia (NBG) announced on Friday.
The total turnover of currency exchange units totalled 6.4 billion GEL ($2.046bln/€1.860bln) in Georgia last year, of which 51.8 percent was in dollars and 14.7 percent in euros, the National Statistics Office of Georgia (Geostat) announced on Tuesday.
Remittances to Georgia from abroad totalled $193.1 million in March 2022, posting a 2.6 percent increase year-on-year, the National Bank of Georgia revealed on Friday.
The National Bank of Georgia offered $20 million at the foreign exchange auction on Wednesday of which $8.30 million was sold, the bank announced today.