NBG Sells USD 40 Million at Foreign Exchange Auction

The National Bank of Georgia (NBG) sold USD 40 million at the Foreign Exchange Auction today, claiming that the average weighted bid rate was 2.9546.

Yesterday, the NBG released a statement, saying the bank would sell $ 40 million at the foreign exchange auction on September 27 to enhance the impact of the tightened monetary policy.

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 the national currency - Lari (GEL).

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. 

Related Story: NBG to Sell $ 40 Million at Foreign Exchange Auction

By Ana Dumbadze