Georgian central bank to sell $40 million to stop lari depreciation | Eurasia Diary -

9 April, Thursday

Georgian central bank to sell $40 million to stop lari depreciation

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The National Bank of Georgia (NBG) announced today that it will sell $40 million at foreign exchange auction tomorrow to control the national currency’s changing value against the US dollar. As a result of the last two interventions the NBG has already sold $60 million in total, EDNews reports citing

"The economic shock caused by the coronavirus and expectations for the future development of the pandemic and its impact on the Georgian economy have also been reflected in the increasing volatility of the foreign exchange market in recent days. It is important that Georgian financial system has been well-prepared for the economic challenges. The banking sector is healthy and sustainable, which ensures that Georgia will recover quickly from this shock", read the statement of the NBG.

Georgian Economic Minister Natia Turnava said that in the global crisis the lari followed the dynamic of the depreciation of other countries' currencies.

"There is a global economic crisis and coronavirus is a global challenge. This situation has hit the economy. National currencies of our neighbouring countries and many other countries have been depreciating. It would be wrong and irresponsible to claim that we will be able to counter this world trend. The only thing we can do is to mitigate the impact of the lari depreciation", Turnava said.

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