BAKU, Azerbaijan, April 29
By Tamilla Mammadova - Trend:
Demand for dollars in Georgia has started to grow again, and in order to satisfy it, the National Bank of Georgia (NBG) has decided to allocate $400 million by swap transactions to the financial sector, Trend reports citing Georgian media.
As reported, $200 million of this amount be transferred to banks, and $200 million - to microfinance organizations.
Due to certain activity, the financial sector has faced the threat of a liquidity shortage. At the same time, in order to prevent the concentration of too large amounts, the regulator introduced a limit - one organization can receive no more than 25 percent of all amounts.
The duration of swap transactions is one month.
Meanwhile, the National Bank of Georgia has sold $20 million on April 27 to stabilize the Georgian lari after further depreciation. Against the backdrop of the outbreak of the coronavirus and the global oil crisis, the Georgian national currency, the lari, has significantly depreciated against the USD in recent weeks.
On March 25, the National Bank of Georgia sold $40 million at foreign exchange auction, while it sold another $40 million on March 19 and $20 million on March 13.
The National Bank of Georgia is keeping the refinancing rate at 9 percent.
---
Follow the author on Twitter: @Mila61979356