20 June 2024,   09:47
National Bank of Georgia intervened with a USD 60 million to stabilize currency market

In response to recent volatility in the currency market, the National Bank of Georgia intervened with a USD 60 million injection at the foreign exchange auction. This decision was made to provide liquidity and address the excess demand for currency, which resulted from recent large, one-time transactions that exerted additional pressure on the GEL exchange rate.

The National Bank emphasizes that these fluctuations are not due to fundamental macroeconomic issues and are expected to be short-term. Key economic indicators remain strong: international reserves are at historical highs, foreign inflows are stable, the current account deficit is at a historical low, and high economic growth has been recorded over the past three years. Additionally, inflation is below the 3% target, and both the fiscal balance and public debt are at sustainable levels.

The commercial banking sector in Georgia is robust, with healthy profitability, high-quality assets, and solid capital and liquidity buffers. These factors ensure that banks can continue to serve customers effectively and support economic lending. Currently, the banking system’s liquid assets exceed 16.7 billion GEL, demonstrating exceptional resilience to potential shocks. Georgia"s financial system is among the strongest in Europe.

The National Bank of Georgia will continue to monitor market conditions and will utilize all available tools to maintain financial market stability.