Page 30 - GEORptOct20

7.0​ FX
Georgia - Foreign exchange rate
2016
2017
2018
2019
Jan’20
Mar’20
May’20
Jul’20
Currency (units per EUR) (average)
2.617
2.832
2.991
3.155
3.203
3.360
3.486
3.498
Currency (units per USD) (average)
2.367
2.509
2.534
2.819
2.883
3.041
3.198
3.063
Georgia’s central bank props up currency again as weakening continues
Georgia’s monetary authority (the National Bank of Georgia, or NBG) is to sell $40mn at a foreign exchange auction on September 23, with the Georgian lari (GEL) having weakened by 3% versus the dollar over the past week, moving past the 3.25 benchmark.
On September 16, the NBG carried out its 13th foreign exchange intervention to date this year to put a brake on depreciation, selling $40mn on the market. In total, since the onset of the coronavirus (COVID-19) crisis, the NBG has sold more than $410mn of its reserves in foreign exchange auctions.
According to NBG president Koba Gvenetadze, by the end of the year, more than $200mn in foreign exchange interventions are expected to have been implemented.
“Maintaining exchange rate flexibility remains important for managing shocks,” the International Monetary Fund (IMF) said on September 16, at the end of a virtual visit paid to Georgia.
Georgia is expected to receive $1.5bn of foreign financing this year in order to mitigate the effects of the pandemic, particularly as regards the key tourism industry.
Through its interventions, the NBG substitutes on the market forex revenues from exports, tourism and remittances with some of the money borrowed by the country from international financial institutions (IFIs).
As of the end of August, Georgia's foreign exchange reserves stood at $3.9bn.
30​ GEORGIA Country Report ​October 2020 ​ ​www.intellinews.com