Georgian Central Bank Selling 100 mln USD to Stop GEL Record Fall Georgian Central Bank Selling 100 mln USD to Stop GEL Record Fall 

Georgian Central Bank Selling 100 mln USD to Stop GEL Record Fall Georgian Central Bank Selling 100 mln USD to Stop GEL Record Fall 

The FINANCIAL -- "The economic shock caused by the coronavirus and the expectations of the future development of pandemic and its impact on the Georgian economy have been reflected on increased volatility of the foreign exchange market during the recent days," National Bank of Georgia said today in responce to the dramatic fall of national currency. 

The exchange rate of the Georgian national currency has sunk to 3.50 lari to the dollar, 1 GEL fall just in one week. 

NBG said, in order to support the foreign exchange market the NBG has already performed two interventions for an amount of US $ 60 million. "It should be noted that the National Bank of Georgia has been accumulating International reserves' over the previous years. Despite the current multiple uncertainties, the National Bank continues working intensively in order to minimize the negative impact on the citizens."

"It is very important that the financial system of Georgia is well prepared to face the economic challenges. The banking sector is healthy and sustainable, which is a guarantee that after coming through the shock the Georgian economy will recover promptly and return to its normal condition", bank said.

For supporting the foreign exchange market, NBG will sell US $40 million on FX auction on March 25.

Author: The FINANCIAL