National Bank of Georgia sells $60 million foreign exchange auction

The National Bank of Georgia on Tuesday sold 60 million dollars at a recent foreign exchange auction, with the weighted average exchange rate recorded at 2.8635. 

Currently, the exchange rate set by the National Bank places 1 US dollar at 2.8490 GEL.

In an official statement, the National Bank explained, “The goal of the intervention is to reduce the possible negative impact on market expectations resulting from one-time large transactions.” The statement further elaborated, “To prevent these transactions from causing excessive fluctuations in the exchange rate, the National Bank supplies foreign currency to the market through foreign exchange auctions as needed.”

The determination of the official exchange rate of the GEL is based on transactions conducted in the interbank foreign exchange market. Since the implementation of the foreign influence transparency bill, the National Bank has intervened by selling 60 million dollars twice and 48.7 million dollars once to stabilize the lari’s exchange rate.Market analysts and stakeholders are closely watching to see how this latest intervention will influence the lari’s performance in the currency market.