BAKU, Azerbaijan, March 18
By Tamilla Mammadova – Trend:
National Bank of Georgia (NBG) will sell $40 million at a foreign exchange auction on March 19, Trend reports citing NBG.
Last week, in order to stop the depreciation of the national currency, the National Bank of Georgia carried out its first intervention this year and sold $20 million from its reserves at a foreign exchange auction.
Over the past 10 working days, the lari has depreciated by 11 percent against the dollar, and by 9.7 percent against the euro.
Meanwhile, the National Bank of Georgia decided to keep refinancing rate unchanged at 9 percent.
According to the NBG’s forecast, inflation started to decline in early March 2020 and should be close to target inflation (three percent) by the end of 2020.
To decrease the pressure of the exchange rate on inflation, the National Bank of Georgia increased the refinancing rate by 0.5 percentage points to 7.5 percent on September 25, and again by one percentage point to 8.5 percent on October 23.
Follow the author on Twitter: @Mila61979356