The National Bank raised 60 000 000 USD and sold 48 500 000 USD at today's foreign exchange auction. The weighted average exchange rate was 2.7194. Following the intervention, the national currency strengthened by 2.21 Tetri against the dollar, setting the official value of one dollar at 2.7230 GEL. The lari also appreciated by 1.97 tetri against the euro, with the value of one euro now standing at 2.9909 GEL.
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The National Bank reported that excessive demand for currency in recent days has created additional pressure on the exchange rate of the Lari, primarily due to one-time large transactions, particularly the scheduled issuance of dividends. The NBG explained that it decided to intervene in the currency market to alleviate this pressure.
"Under the floating exchange rate regime, the exchange rate is determined by fundamental macroeconomic factors. The fluctuations observed in the currency market recently are not related to macroeconomic factors and are therefore considered short-term. The macroeconomic fundamentals remain strong - high economic growth has been recorded over the past three years, with inflation below the 3% target since 2023. Additionally, strong foreign currency inflows help maintain the current account deficit at a sustainable level," stated the National Bank of Georgia.
From May 16 to today, the National Bank sold a total of 217 200 000 US dollars in four foreign exchange auctions: 60 000 000 dollars on May 16, 48 700 000 dollars on May 28, 60 000 000 dollars on June 11, and 48 500 000 dollars on October 8.
