At the auction held on October 8, 2024, the National Bank of Georgia sold USD 48 500 000, with a weighted average exchange rate of 2.7194.
“To mitigate the negative impact of excessive fluctuations and one-time large transactions in the foreign exchange market, the NBG periodically conducts foreign exchange interventions.
In recent days, a surge in demand for foreign currency has put additional pressure on the exchange rate of the lari. This increase in demand has primarily resulted from large transactions such as scheduled dividend payments. To ease the existing pressure, the NBG opted to intervene in the currency market.
It is important to note that under the floating exchange rate regime, the exchange rate is determined by macroeconomic fundamental factors. The recent fluctuations observed in the currency market are not linked to these fundamental factors and are therefore considered short-term. The macroeconomic fundamentals remain robust, characterized by strong economic growth over the past three years and inflation rates below the 3% target since 2023. Additionally, strong foreign exchange inflows are helping to maintain the current account deficit at a sustainable level,” the NBG stated.
