The National Bank of Georgia Releases a Statement

The National Bank of Georgia has just published a statement concerning the devaluation of National currency.
“According to the estimation of National Bank of Georgia, despite the positive internal and foreign macroeconomic dynamics, the touristic shock and negative expectations spread in society caused the devaluation of national currency. The latter might make for a dangerous circumstance – putting the stability of prices under some serious risk. Considering this, the National Bank of Georgia deems it necessary to put its instruments into use, so the materialization of this risk is avoided.

To complete that goal, tomorrow, on August 1, the National Bank will sell 40 million US Dollars at an auction. If necessary, the National Bank of Georgia will continue intervention in the following days. If the pressures of exchange rate have persevering effects on inflation, the National Bank will also toughen the monetary policy,” reads the statement.

By Nini Dakhundaridze