Georgia's National Bank takes more steps to stop lari deprecation

Finance Materials 25 March 2020 12:02 (UTC +04:00)
Georgia's National Bank takes more steps to stop lari deprecation

BAKU, Azerbaijan, March 25

By Tamilla Mamedova – Trend:

The National Bank of Georgia (NBG) will sell $40 million at foreign exchange auction on March 25 to control the national currency’s changing value against the USD, Trend reports via the NBG.

As a result of the last two interventions, the NBG has already sold $60 million in total.

"The economic shock caused by the coronavirus and expectations for the future development of the pandemic and its impact on the Georgian economy have also been reflected in the increasing volatility of the foreign exchange market in recent days. It is important that Georgian financial system has been well-prepared for the economic challenges. The banking sector is healthy and sustainable, which ensures that Georgia will recover quickly from this shock," reads the statement.

Georgian Economy Minister Natia Turnava has said that in the global crisis, the lari followed the dynamic of the depreciation of other countries' currencies.

"There is a global economic crisis and coronavirus is a global challenge. This situation has hit the economy. It would be wrong and irresponsible to claim that we will be able to counter this world trend. The only thing we can do is to mitigate the impact of the lari depreciation", Turnava said.