| The National Bank of Georgia Launched a New Monetary Policy Instrument – the Currency Auction |
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19/03/2009 15:37 (357 Day 14:06 minutes ago) | |||||
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The FINANCIAL -- Starting last week, the National Bank of Georgia launched a new monetary policy instrument – the Currency Action. This instrument is widely used in monetary interventions of developed economies and serves as a tool for increasing liquidity of US dollars circulating in the economy.
By using this modern and flexible instrument, trading will occur twice a week, and it will partially replace the Interbank Currency Exchange. Additionally, by introducing this new system, commercial banks will be able to trade currency directly on the interbank market 24 hours per day.
The official exchange rate is still determined by the trade results in the interbank currency exchange.
The National Bank of Georgia continues to work on introducing and implementing new monetary instruments that will facilitate the development of the money and currency markets in Georgia.
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