National Bank of Georgia to continue foreign exchange interventions in 2021
BAKU, Azerbaijan, Jan.5
By Tamilla Mammadova – Trend:
The National Bank of Georgia (NBG) sold up to $50 million on the new Bmatch platform in 2020, Trend reports via Georgian media.
According to the National Bank, interventions in the financial market in the first half of 2021 will be carried out through currency auctions and the Bmatch platform.
As reported, in 2020 the National Bank provided about $873 million to the foreign exchange market through direct interventions.
The National Bank will continue foreign exchange interventions until the end of 2020, as well as in 2021.
The main goal of the NBG in foreign exchange interventions is usually to stabilize the exchange rate of the lari.
According to experts, the problem of the lari is the decrease in the flow of dollars into the country. The dollar comes mainly from exports, tourism, foreign direct investment, and remittances.
For many years tourism has been the main locomotive of Georgia. Tourism was in decline in 2020 due to the pandemic.
There has been a slight increase in exports and remittances, which cannot counterbalance the decline in tourism. In addition, the country still has a negative trade balance.
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