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Georgia reveals results of 18 foreign exchange auctions conducted by National Bank

Finance Materials 26 October 2020 17:40 (UTC +04:00)
Georgia reveals results of 18 foreign exchange auctions conducted by National Bank

BAKU, Azerbaijan, October 26

By Tamilla Mammadova – Trend:

The National Bank of Georgia made a total of 18 foreign exchange interventions in the amount of $569.65 million to reduce fluctuations of the exchange rate of the national currency and increase the liquid assets of the UDS on the market, Trend reports via Georgian media.

The national currency has depreciated sharply since the first case of COVID-19 was detected in Georgia.

As of March 1, the cost of 1 USD made up 2.79 lari, while in 2 weeks it reached 2.99 lari, then lari has depreciated sharply and the value of 1 USD exceeded 3.40 lari.

The maximum exchange rate of USD was on March 27, 2020, when 1 USD had made up 3.48 lari.

To reduce such volatility, the National Bank launched foreign exchange interventions on March 13 and sold $20 million.

In March, the NBG held three foreign exchange auctions and sold $100 million.

At the end of the month, lari strengthened significantly due to the anti-crisis plan presented by the government and the donors' readiness to provide emergency assistance to Georgia. In April, the value of the dollar became 3.15 lari. In the same month, the NBG made only one intervention and sold $20 million.

In June, the national currency strengthened and the USD became 2.95 lari. However, the exchange rate of the national currency depreciated soon, which was also related to the changed expectations about tourism.

The results of 18 foreign exchange auctions conducted by the NBG:

1. March 13, 2020 – intervention of $20 million, change of exchange rate - depreciation - 1.40 cents;
2. March 19, 2020 - $40 million intervention, change of exchange rate - strengthening 74 cents;
3. March 25, 2020 - $40 million intervention, change of exchange rate - depreciation - 26 cents;
4. April 27, 2020 - $20 million intervention, change of exchange rate - depreciation - 5 cents;
5. May 21, 2020 - $40 million intervention, change of exchange rate - strengthening 28 cents;
6. June 10, 2020 - $29.65 million intervention, change of exchange rate - strengthening 79 cents;
7. June 17, 2020 - $20 million intervention, change of exchange rate - strengthening 75 cents;
8. July 02, 2020 - $20 million intervention, changed of the exchange rate - strengthening 32 cents;
9. July 22, 2020 - $40 million intervention, change of exchange rate - strengthening 34 cents;
10. August 13, 2020 - $20 million intervention, change of exchange rate - strengthening 17 cents;
11. August 27, 2020 - $40 million intervention, change of exchange rate - strengthening 34 cents;
12. September 10, 2020 - $40 million intervention, change of exchange rate - depreciation - 4 cents;
13. September 16, 2020 - $40 million intervention, change of exchange rate - depreciation -0.01 tetri;
14. September 23, 2020 - $40 million intervention, change of exchange rate - depreciation - 32 cents;
15. October 02, 2020 - $20 million intervention, change of exchange rate - strengthening 4 cents;
16. October 09, 2020 - $30 million intervention, change of exchange rate - strengthening 19 cents;
17. October 19, 2020 - $30 million intervention, change of exchange rate - strengthening 21 cents;
18. October 22, 2020 - $40 million intervention, change of exchange rate - strengthening 29 cents.

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