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National Bank of Georgia sells funds at foreign exchange auction to stabilize lari

Finance Materials 27 January 2021 17:38
National Bank of Georgia sells funds at foreign exchange auction to stabilize lari

BAKU, Azerbaijan, Jan.27

By Tamilla Mammadova – Trend:

National Bank of Georgia (NBG) offered $40 million at a foreign exchange auction, Trend reports via the NBG.

The average weighted rate was 3.2964.

This is the second foreign exchange intervention carried out by the National Bank in 2021. On Jan.7 NBG sold $40 million. In 2020, the NBG provided the domestic foreign exchange market with $873 million.

Last year, the National Bank of Georgia sold up to $50 million on the new Bmatch platform.

The National Bank will continue foreign exchange interventions until the end of 2021, as well as in 2022.

In January 2020, the cost of $1 was in the range of 2.86-2.89 lari in Georgia. However, with the outbreak of the coronavirus pandemic and the global oil crisis, lari hit a record low against USD and stood at 3.48 on March 27.

To stabilize the Georgian lari amid its depreciation, NBG sold $20 million at a foreign exchange auction on March 13, $40 million on March 19, and 40 million laris ($13.09 million) on March 25.

On April 27, the National Bank of Georgia sold another $20 million to stabilize the Georgian lari after further depreciation.

The National Bank of Georgia put up $40 million at a foreign exchange auction on June 10; however, only $29.65 million was sold.

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