The National Bank of Georgia sold $60 million at the foreign exchange auction on Wednesday in a move to “stabilise” the currency market.
This decision comes as part of an effort to counteract the potential volatility and non-fundamental influences that often accompany the pre-election period”, the Bank said in reference to the parliamentary vote scheduled in the country on Saturday.
The average weighted rate of the operation was 2.7139. In today’s currency rates, $1 costs ₾2.7157, while €1 costs ₾2.9273.
The central bank explained the auction aimed to mitigate the pressures brought about by large individual transactions that had contributed to “recent market uncertainty”.
In these situations, the NBG utilises its mandate and monetary tools to help balance market expectations as well as currency supply and demand. It is anticipated that by addressing these expectations, the currency market will return to its normal dynamics”, the Bank said.
The central bank noted Georgia’s macroeconomic fundamentals remained “healthy”.
The nation has experienced high economic growth over the past three years, with inflation rates consistently below the target of three percent since 2023. According to preliminary reports, exports rose by 17 percent in September, while imports saw a decline of 4.2 percent. Additionally, robust foreign currency inflows have played a vital role in keeping the current account deficit at sustainable levels”, the body said.
The Bank earlier today decided to maintain the refinancing rate at eight percent, reflecting the country’s ongoing “low-inflation” environment.
