National Bank of Georgia resumes currency purchases in March, negotiating new program with IMF
TBILISI. March 10 (Interfax) – The National Bank of Georgia (NBG) resumed purchasing foreign currency on the domestic market in March after a decline in reserves over the previous two months, head of the NBG Natia Turnava said.
“March marks the beginning of a period that allows us to replenish our reserves and buy currency on the market. This information will be published next month, and it is not appropriate to discuss our current actions on the foreign exchange market now. Overall, there is a significant inflow of foreign currency into the country,” Turnava was quoted by the business publication bm.ge as saying.
The Georgian lari is strengthening against the dollar, and inflation is subdued, she said. “You can see that the lari has strengthened further. February inflation is below the target of 3% and stands at 2.4%, so all figures suggest that we will be able to start replenishing reserves,” Turnava said.
In February, the NBG’s international reserves fell by $202 million or 4.5% to $4.23 billion, she said, following a $18.5 million decline in January. The main reason for this decline was not the operations of the National Bank but the Georgian government’s operations to service external public debt, she said. The NBG did not resort to currency interventions in January-February, Turnava said.
Negotiations with the IMF regarding a new credit program are ongoing, she said. “Regarding the IMF, both the government and the National Bank continue to communicate and work together. A month ago, I attended a meeting organized by the IMF in Amsterdam. Work is ongoing, and further steps will be determined. We have always considered the IMF our strategic partner and supporter,” she said.
