Davit Utiashvili, Head of the Financial Stability Department at the National Bank of Georgia, on Thursday, said, “The currency market is under pressure due to pre-election activities, one-time transactions, and expectations.”
According to Utiashvili, “The NBG’s intervention strategy involves deploying reserves to counteract temporary market imbalances.”
“As experience shows, after the passing of the election agitation, the market players will return the currency purchased in excess, which will allow the National Bank to fill its reserves.
Like similar periods and other countries, this is the pressure on the currency market related to the pre-election period, and expectations.
As experience shows, market players return the overbought foreign currency when the turbulent episode passes and negative expectations subside. Therefore, we expect that we will refill the reserves in the coming months”, Utiashvili noted.
He added that “the National Bank operates by the international reserves management strategy, which is in line with the practice of other central banks.”
