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How Much USD do Commercial Banks Buy and Sell?

National Bank of Georgia (NBG) published indicators about the volume of USD Georgia-based commercial banks buy and sell in Georgia. In 2013-2016 commercial banks used to buy 13.5bln USD and sold 14bln USD a year on average. This signifies commercial banks used to supply more USD to the currency market. In January-September 2016 commercial banks bought 9.5bln USD and sold 10bln USD.

The USD trading volume (which is carried out through Bloomberg trading system and is the ground of GEL official exchange rate} ranges from 1.2 to 2.2bln USD a year. If we divide the 2017 indicators on workdays, we will see that commercial banks daily sell and buy 6mln USD. The volume of USD that commercial banks buy from each other is determined by the demand of commercial banks for USD.

In January-September 2017 commercial banks bought 1.1bln USD from each other, 3.2bln USD from nonresident commercial banks and 5.1bln USD from legal and physical bodies.

Chart: Results of trading carried out by commercial banks by USD on currency market, millions of USD

Total At Currency Auction From Commercial Banks From Nonresident Banks From Legal and Physical Bodies
2013  14,120 240 1,554 5,688 6,638
2014  13,164 300 2,017 4,478 6,370
2015  12,694 287 1,189 5,962 5,256
2016  14,152 280 2,155 5,841 5,877
2017    9,452 1,085 3,239 5,128
January    1,246 97 723 426
February    1,102 86 539 478
March 1,268 106 543 619
April 756 85 294 377
May 1,018 136 252 630
June 1,210 157 367 685
July 934 141 171 622
August 937 135 147 655
September 980 140 204 636