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S&P expects Georgian National Bank to further accumulate foreign exchange reserves

Finance Materials 12 October 2019 19:15 (UTC +04:00)
Standard & Poor’s global rating company expects the National Bank of Georgia to continue accumulating foreign exchange reserves
S&P expects Georgian National Bank to further accumulate foreign exchange reserves

Baku, Azerbaijan, October 12

By Tamilla Mammadova – Trend:

Standard & Poor’s global rating company expects the National Bank of Georgia to continue accumulating foreign exchange reserves, Trend reports citing S&P.

The company analysts note that since 2016, Georgia’s reserves have grown on average by $250 million a year.

“The floating exchange rate regime in Georgia with periodic intervention by the National Bank of Georgia remains an important factor,” the report says.

The rating company estimates that in June this year, reserves reached $3.74 billion, which is 2.5 times more than in 2018.

However, reserves decreased slightly as a result of foreign exchange interventions against the depreciation of the lari.

S&P notes that by adjusting the lari exchange rate, the country was able to maintain financial stability.

The report also points to the importance of independence of the National and regards high level of dollarization as one of the challenges.

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