National Bank of Georgia buys another USD 40 million

2022/08/7973--1660199108.jpg
Read: 372     14:00     11 Август 2022    

National Bank of Georgia bought USD 40 million at the foreign exchange auction.

The weighted average exchange rate at the time of purchase was 2.7096.

Due to the sharp strengthening of the national currency, the National Bank of Georgia began buying dollars in May 2022 - this happened for the first time since 2019.

Georgia's national currency has begun to strengthen rapidly since March 10. Before that, the National Bank of Georgia had to sell $39.57 million at an auction to stop the fall of the GEL, which reached 3.4 GEL/$1 at the beginning of the month.

On May 24, the NBG bought $10 million at a currency auction.

August 1 – 10 million,

August 5 - 20 million dollars.

Another 100 million dollars the National Bank of Georgia has purchased since the spring at an auction Bloomberg.

The exchange rate of lari against the U.S. dollar since May 2009 is set through the aggregation of transactions in the interbank market trading system Bloomberg. Since February 1, 2021, the Georgian foreign exchange market has fully switched to the Bloomberg Bmatch system.

Back in the spring, analytical group TBC CAPITAL warned of signs of an "excessive strengthening of the GEL.

This was influenced by the inflow of currency into the country due to migrants and tourists, and a sharp increase in remittances from abroad.

Against this background, the external balance sheet is improving, employment has increased and price growth has slowed down.

Inflation is a big problem and further strengthening of the GEL 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.

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National Bank of Georgia buys another USD 40 million

2022/08/7973--1660199108.jpg
Read: 373     14:00     11 Август 2022    

National Bank of Georgia bought USD 40 million at the foreign exchange auction.

The weighted average exchange rate at the time of purchase was 2.7096.

Due to the sharp strengthening of the national currency, the National Bank of Georgia began buying dollars in May 2022 - this happened for the first time since 2019.

Georgia's national currency has begun to strengthen rapidly since March 10. Before that, the National Bank of Georgia had to sell $39.57 million at an auction to stop the fall of the GEL, which reached 3.4 GEL/$1 at the beginning of the month.

On May 24, the NBG bought $10 million at a currency auction.

August 1 – 10 million,

August 5 - 20 million dollars.

Another 100 million dollars the National Bank of Georgia has purchased since the spring at an auction Bloomberg.

The exchange rate of lari against the U.S. dollar since May 2009 is set through the aggregation of transactions in the interbank market trading system Bloomberg. Since February 1, 2021, the Georgian foreign exchange market has fully switched to the Bloomberg Bmatch system.

Back in the spring, analytical group TBC CAPITAL warned of signs of an "excessive strengthening of the GEL.

This was influenced by the inflow of currency into the country due to migrants and tourists, and a sharp increase in remittances from abroad.

Against this background, the external balance sheet is improving, employment has increased and price growth has slowed down.

Inflation is a big problem and further strengthening of the GEL 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.

newsgeorgia.ge





Tags: