Georgian central bank sells $60mln at foreign exchange auction
The National Bank of Georgia on Tuesday sold $60 million at the foreign exchange auction to mitigate a “potential negative impact” on market expectations resulting from “large one-time transactions”. Photo: Nino Alavidze/Agenda.ge
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The National Bank of Georgia on Tuesday sold $60 million at the foreign exchange auction to mitigate a “potential negative impact” on market expectations resulting from “large one-time transactions”.
The bank said the transactions, particularly those made by the financial sector in repayment of lari-denominated liabilities issued in previous years or payment of dividends, had temporarily increased demand for foreign currency in the foreign exchange market.
It added it had provided foreign currency to the market to “prevent these transactions from causing excessive exchange rate fluctuations”.
The average weighted rate of the operation was 2.8635. In today's currency rates, $1 costs ₾2.8490, while €1 costs ₾3.0584.
The National Statistics Office of Georgia on Monday said domestic inflation for May, calculated using the European Union methodology, had stood at 2.4 percent - 0.4 percent higher than the two percent inflation calculated using the national methodology.
The National Bank of Georgia on Wednesday provided an update of the current situation and macroeconomic indicators in the banking and financial sectors of the country by releasing updated figures in inflation, import and other data.
The National Bank of Georgia offered $60 million at the foreign exchange auction on Tuesday, of which $48.70 million was sold.
The National Bank of Georgia on Wednesday decided to reduce the refinancing rate by 0.25 percentage points, to eight percent, in light of the “low-inflation environment” in the domestic economy.