Georgia, Tbilisi, May 25 / Trend , N. Kirtskhalia/
The National Bank of Georgia will not participate in transactions on the Tbilisi Inter-Bank Stock Exchange any longer and will intervene with the currency market with the help of currency auctions, NBG President Georgi Kadagidze said at a press conference.
He said official exchange rate of lari will be fixed not under a fixed rate on the stock exchange, but via aggregation of deals registered in Bloomberg trade system from March 25.
Kadagidze said currency auctions are a new monetary instrument launched by the NBG in March 2009 and are held through Bloomberg trade terminal. Auctions are held twice a week.
"Currency auctions, as opposed to deals on stock exchange with the participation of the National Bank, represent a more flexible market-based instruments and the modern form of intervention. I emphasize that the changes are not a revision of exchange rate policy. The National Bank will continue to operate in a managed floating rate regime, under which the establishment of the exchange rate will largely take place through market mechanisms and the National Bank will intervene with the currency market from time to time," Kadagidze said.
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