The Georgian National Bank sold an additional 60 000 000 US dollars at the foreign exchange auction, with a weighted average exchange rate of 2.8635.
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As stated by the National Bank, the aim of this intervention is to reduce the possible negative impact on market expectations resulting from one-time large transactions.
"One-time large transactions, particularly by the financial sector, repayment of liabilities denominated in GEL issued in previous years, payment of dividends, temporarily increase the demand for foreign currency in the foreign exchange market. To prevent these transactions from causing excessive fluctuations in the exchange rate, the National Bank provides foreign currency to the market through foreign exchange auctions as needed," the National Bank explains.
Following the adoption of the Russian Law on so-called Foreign Agents by the Parliament of Georgia, in the last month, the National Bank has sold a total of 168 700 000 US dollars: on May 16 - 60 million, on May 28 - 48.7 million, on June 11 - 60 million. Despite this, the lari continues to depreciate against the dollar and the euro. On May 11, the official value of one US dollar was 2.6755 GEL, and the euro was 2.8837. Today, according to the official exchange rate, 1 US dollar is worth 2.8490 lari, and 1 euro is 3.0584 GEL.
