Georgia’s central bank sells $39.5 million in currency auction

The National Bank of Georgia (NBG) offered USD 50 million at Wednesday’s currency auction of which USD 39.5 million was sold, the bank announcement yesterday.

In the first exchange intervention this year, the BNG made the sale with a weighted average rate of 3.3947.

Georgian Finance Minister Lasha Khutsishvili told Rustavi 2 TV channel yesterday that the process of exchange rate stabilization has begun and noted “there is no basis for further depreciation of the exchange rate change”, adding that in the long term it would depend on the situation in the Black Sea region, referring to the military conflict in Ukraine that Russia started 15 days ago.

Khutsishvili also addressed the public and businesses, saying that the current macroeconomic situation in the country has not “deteriorated significantly, on the contrary, the growth rate remains in all directions”, citing figures from the increase in exports of locally produced goods which amounted to 47.6% in January and remittances which totaled USD 168.8 million in January.

Economy Minister Levan Davitashvili said on Tuesday that macroeconomic parameters in Georgia were “very healthy and stable”, and did not cite any “objective” grounds for the depreciation of the national currency. He also said that the ongoing political processes in the country and “the turmoil created around the national currency” contributed to the devaluation.

The official exchange rate shows that as of today, 1 USD costs 3.4019 GEL and 1 EUR costs 3.7360 GEL.

In 2021, the NBG sold USD 332.9 million through nine currency auctions. According to central bank data, Georgia’s foreign exchange reserves stood at USD 4,078,074,900 in January 2022.