NBG to Sell $ 40 Million at Foreign Exchange Auction

The National Bank of Georgia (NBG) has announced that it will sell $ 40 million at the Foreign Exchange Auction tomorrow due to the devaluation of the national currency, Lari (GEL). 

The Bank representatives say that this monetary intervention is intended to enhance the impact of the tightened monetary policy, explaining that the reasons behind such decision are inflation expectations as a result of the depreciation of Lari.

"The National Bank will sell $ 40 million at the foreign exchange auction tomorrow, September 27, to enhance the impact of the tightened monetary policy. It will consistently use its instruments to maintain price stability,” reads the statement.

On August 1, The National Bank of Georgia sold USD 32,800.000 at the Foreign Exchange Auction due to the same reason, noting that external tourist shocks and negative expectations raised in society had caused the devaluation of GEL, putting the stability of prices at serious risk and leading the NBG to consider it necessary to use its instruments to avoid the materialization of said risk. 

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By Ana Dumbadze