01.Apr .2021 13:30

Unfortunately, this is so - NBG on selling reserves

Unfortunately, this is so - NBG on selling reserves
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“I confirm and announce that we will spend the reserves this year as well, but this will not change what is determined by the fundamental factors. Unfortunately, this is so”, said Koba Gvenetadze, President of the National Bank of Georgia.

In 2020, the NBG made interventions of 916 million USD, while this year the central bank sold 160 million USD at the foreign exchange auctions. In 2021, the central bank made 4 interventions.

Koba Gvenetadze says that the NBG cannot make interventions to mitigate the effects of such fundamental factors as declining tourism revenues, exports or other factors. Koba Gvenetadze calls the struggle against these factors with foreign exchange reserves an "absolute utopia."

“We made intervention of 916 million USD last year, but these reserves were not spent on mitigation of fundamental factors or strengthening GEL exchange rate. This is an absolute utopia. We provided reserves to the market in order to work it properly”, Koba Gvenetadze noted.