The National Bank of Georgia started buying dollars

2022/05/78945-1653464819.jpg
Read: 295     11:00     25 Май 2022    

The National Bank of Georgia, for the first time since 2019, began to buy dollars against the background of a sharp strengthening of the national currency lari. Before that, the bank sold dollars to keep the lari falling, but since March, the Georgian currency has strengthened by 15.7%.
On Tuesday, the National Bank bought $ 10 million at a currency auction. The official exchange rate of lari to the dollar on Wednesday is 2.8668 GEL/$1 (the exchange rate may change during the day).
The lari exchange rate against the US dollar has been set since May 2009 through aggregation of transactions on the interbank market of the Bloomberg trading system. Since February 1, 2021, the Georgian foreign exchange market has completely switched to the Bmatch Bloomberg system.
The analytical group TBC CAPITAL recently warned of signs of "excessive strengthening of the lari.
This was influenced by the influx of foreign currency into the country at the expense of migrants and tourists, and a sharp increase in the volume of money transfers from abroad. Against this background, the indicators of the external balance are improving, the level of employment has increased and price growth has slowed down.
Inflation is a big problem and further strengthening of the lari in this regard is only welcome. Although TBC Capital believes that, given the strong position of the dollar in international markets, a more neutral forecast is relatively likely.
This scenario, in the context of an increase in the supply of dollars in the foreign exchange market, assumes increased currency interventions by the National Bank to buy dollars," the weekly review says.
The national currency of Georgia has been rapidly strengthening since March 10. Prior to that, to stop the fall of the lari, which reached 3.4 GEL/$1 at the beginning of the month, the National Bank of Georgia had to sell $ 39.57 million at auction.

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The National Bank of Georgia started buying dollars

2022/05/78945-1653464819.jpg
Read: 296     11:00     25 Май 2022    

The National Bank of Georgia, for the first time since 2019, began to buy dollars against the background of a sharp strengthening of the national currency lari. Before that, the bank sold dollars to keep the lari falling, but since March, the Georgian currency has strengthened by 15.7%.
On Tuesday, the National Bank bought $ 10 million at a currency auction. The official exchange rate of lari to the dollar on Wednesday is 2.8668 GEL/$1 (the exchange rate may change during the day).
The lari exchange rate against the US dollar has been set since May 2009 through aggregation of transactions on the interbank market of the Bloomberg trading system. Since February 1, 2021, the Georgian foreign exchange market has completely switched to the Bmatch Bloomberg system.
The analytical group TBC CAPITAL recently warned of signs of "excessive strengthening of the lari.
This was influenced by the influx of foreign currency into the country at the expense of migrants and tourists, and a sharp increase in the volume of money transfers from abroad. Against this background, the indicators of the external balance are improving, the level of employment has increased and price growth has slowed down.
Inflation is a big problem and further strengthening of the lari in this regard is only welcome. Although TBC Capital believes that, given the strong position of the dollar in international markets, a more neutral forecast is relatively likely.
This scenario, in the context of an increase in the supply of dollars in the foreign exchange market, assumes increased currency interventions by the National Bank to buy dollars," the weekly review says.
The national currency of Georgia has been rapidly strengthening since March 10. Prior to that, to stop the fall of the lari, which reached 3.4 GEL/$1 at the beginning of the month, the National Bank of Georgia had to sell $ 39.57 million at auction.

newsgeorgia.ge





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